During the prestigious Future Investment Initiative held in Riyadh on October 24th, 2023, the Saudi Electricity Company (SEC) made a momentous announcement. They unveiled the signing of a substantial US$3 billion international syndicated facility agreement with four prominent regional banks. This groundbreaking development underscores SEC's commitment to expanding its electricity sector and capital expenditure plans with an investment strategy of approximately SAR 500 billion by 2030.
The financing arrangement spans a five-year tenure and notably does not require any guarantees from SEC. Collaborating banks include Dubai Islamic Bank PJSC, Kuwait Finance House, Mashreq Bank PSC, and Saudi National Bank.
Engineer Khaled Al-Gnoon, CEO of SEC, shared his insights on the significant investment, stating, "This financing aligns seamlessly with our ambitious investment strategy, aiming to inject approximately SAR 500 billion into our expansion plans in the electricity sector and capital expenditure by 2030. Our primary goal is to provide exceptional electricity services, enhance the growth of our regulated asset base, and fortify our financial position for future revenue growth."
He further emphasized that the investments are geared towards building smart grids, integrating renewable energy projects, and improving grid reliability, all contributing to optimal electricity production in line with the goals of Vision 2030. Additionally, these investments bring forth environmental and societal benefits, aligning with green and eco-friendly initiatives.
Engineer Al-Gnoon highlighted SEC's objective to create a diversified portfolio, expanding into new business segments such as fiber optics telecom, ICT services, energy services, and solutions, as well as facilitating electric vehicle infrastructure, among other opportunities.
He underscored SEC's strong financial profile and well-balanced capital structure, supported by favorable regulatory and financial reforms in the electricity sector, positioning the company for successful growth and enhanced shareholder returns.
In conclusion, Engineer Al-Gnoon expressed his satisfaction with the support from leading regional banks, reinforcing SEC's strong credit profile and fostering continued collaboration with financing partners in the pursuit of its strategic objectives. This significant financing agreement marks a pivotal moment in SEC's journey towards advancing the electricity sector in Saudi Arabia.
