SaudiElectricityCompany (SEC) is seeking a USD 1 bn, five-year loan to finance new projects, including the expansion of one of its power generation plants, Bloomberg reported yesterday, citing sources it said are in the know.

Where will the money go? The syndicated loan will fund general corporate purposes and pay an interest margin of about 85 basis points above the Secured Overnight Financing Rate (SOFR).

Where the company stands: SEC has an A+ rating by both Fitch and S&P and an Aa3 rating from Moody’s. It posted a 7.9% y-o-y increase in net income in 1Q 2025 at SAR 968 mn, supported by higher electricity production revenue and continued growth in demand.

REMEMBER- Last February, SEC and Acwa Power signed a SAR 13.4 bn (USD 3.57 bn) power purchase agreement with the Saudi Power Procurement Company for the Qurayyah independent power project (IPP) expansion in the Eastern Province. The company topped the list of awarded project owners in the Kingdom in April with contracts valued at SAR 7.1 bn, including the Ar Rayis Power Plant Phase 1 in Madinah.

ADVISORS- SEC reportedly tapped Japan’s Sumitomo Mitsui Banking Corp. as the mandated lead arranger and sole bookrunner for the transaction.

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