SEC Secures $1.3bn Sukuk

Saudi state power utility SEC signed an agreement with local banks on 19 September for an SR5bn ($1.33bn) seven-year Islamic Murabaha loan – a type of sukuk whereby banks purchase goods to sell on to clients at an agreed mark-up, with repayment normally in instalments.

The co-financing agreement was concluded with Saudi Arabia’s National Commercial Bank (NCB), Banque Saudi Fransi and Samba Financial Group. The loan will help fund capital projects.

The loan takes to $34.5bn SEC’s fundraising for capacity expansions since 2007 (see table). The company is increasingly reliant on capital markets. Although SEC received a $13.2bn ‘soft loan’ from the Ministry of Finance in March 2014, it has raised $21.3bn from the finance sector. (CONTINUED - 261 WORDS)


table SEC Project Finance