By: Utilities Middle east

Saudi Electricity Company has signed a SAR16 billion ($4.27 billion) shariah-compliant murabaha financing facility with a consortium of regional banks to refinance existing debt, according to a news report by Zawya.

The three-year facility, which includes an extension option subject to agreed terms, was concluded this week. SEC confirmed that no guarantees were provided for the financing.

The participating banks include Saudi National Bank, Al Rajhi Banking and Investment Corporation, Saudi Awwal Bank, Banque Saudi Fransi, Arab National Bank, Riyad Bank and Qatar International Islamic Bank.

The refinancing move comes shortly after SEC signed an Energy Conversion Agreement (ECA) with the Saudi Power Procurement Company (Principal Buyer) for the purchase of electricity from the SAR5.33 billion ($1.4 billion) Rabigh 1 Expansion Power Plant.

Located in the Western Province of Saudi Arabia, the Rabigh 1 Expansion Project is a combined cycle gas turbine (CCGT) power plant with a total capacity of 1,179MW, reinforcing generation capacity as demand continues to grow across the kingdom.

In December last year, SEC also secured a $1 billion agreement with Italy’s export credit agency SACE to support the development and expansion of electricity projects nationwide. The international financing package involved HSBC, UBS, Citibank, ING Bank, Mashreq, Santander, BNP Paribas, BofA Securities and BBVA.

Together, the agreements underline SEC’s active refinancing and funding strategy as it advances large-scale generation and infrastructure investments aligned with Saudi Arabia’s long-term power sector expansion plans.