DEBT WATCH-

#1- PIF-owned Elm lined up a SAR 1.9 bn shariah-compliant loan with the Saudi National Bank (SNB), according to a disclosure to Tadawul. The homegrown digital solutions provider will use the five-year facility to finance corporate expansion and acquisitions.

REMEMBER- Elm’s board approved its acquisition of the PIF’s full stake in Thiqah BusinessServices in a SAR 3.4 bn transaction, following a share purchase agreement signed in January. Elm also agreed to a term sheet to raise its stake in Smart National Solutions to 40% in February.

#2- SHL Finance Company secured a SAR 200 mn renewed shariah-compliant loan from Bank Aljazira, with 125% of the outstanding balance of the facility covered by receivables, according to a disclosure to Tadawul. The five-year financing, to be renewed annually, is aimed at driving the company’s expansion and sales growth.

ICYMI- SHL Finance renewed a SAR 1.9 bn shariah-compliant credit facilities agreement with Arab National Bank (ANB) last month.

OIL & GAS-

Aramco is eyeing investment in two planned Indian state-owned refineries, as it seeks long-term stable outlet for its crude oil in the world’s fastest growing emerging market, Reuters reported, citing Indian sources it says are in the know. Aramco is reportedly proposing to supply crude equivalent to three times its stake in each of the Bharat Petroleum Corp and Oil and Natural Gas Corp ventures — a condition Indian refiners have called “not possible,” a source told the newswire. An agreement may be reached ahead of Indian PM Narendra Modi’s expected visit to the Kingdom in 2Q 2025.

ALSO- Japanese drone services startup Terra Drone signed an MoU with Aramco to begin test runs later this year for inspecting Aramco’s facilities, with actual operations expected to begin in 2027, the company said in a press release. If officially awarded, the contract would be Terra Drone’s largest to date for drone inspection of oil and gas facilities, which marks a more enhanced inspection process than Aramco’s current method which requires two to three weeks for manual inspections.

Terra Drone entered the Saudi market in 2023 after securing USD 14 mn from Aramco’s VC arm Wa’ed Ventures. The drone startup has been conducting inspections and surveying for other firms in the Middle East. The story also got ink from Reuters.

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M&A WATCH-

Alareeb acquires 30% of Pioneer Landmarks: Alareeb Holding completed the acquisition of a 30% stake in local engineering consultancy services company Pioneer Landmarks, according to a statement on LinkedIn. This follows a joint MoU signed in February and is part of Alareeb’s plan to grow in the consultancy sector and expand regionally. The transaction’s value was not disclosed.

ENERGY-

Mitsubishi Power + Doosan Enerbility to supply turbines for two IPP projects: MitsubishiPower and Doosan Enerbility secured orders to supply six M501JAC gas turbines and related equipment for the Rumah-1 and Al-Nairyah-1 independent power plant (IPP) projects, the company said in a press release. The turbines will be assembled locally in Mitsubishi’s Dammam factory.

REMEMBER- The Rumah-1 and Al-Nairyah-1 plants, located in the Central and the Eastern Provinces, each have a production capacity of 1.8 MW, with both making up for nearly 2.5% of the national grid’s capacity. Acwa Power owns a 35% stake in both plants, with the Saudi Electricity Company and Korea Electric Power Corp. (Kepco) also as shareholders.

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