Saudi Energy secures $4bn Islamic credit facility to support operations

Saudi Energy, the kingdom's primary electricity service provider, has announced that it has secured a SAR15.8 billion ($4.1 billion) shariah-compliant Murabaha financing facility from a consortium of seven leading Saudi Energy (formerly the Saudi Electricity Company), the kingdom's primary power service provider, said it had secured a SAR15.8 billion ($4.1 billion) shariah-compliant Murabaha financing facility from a consortium of seven leading Saudi banks to support its general corporate purposes.

The financing facility signed yesterday (July 27) has a tenure of seven years from the date of signing. It was arranged by Saudi National Bank (SNB), Al Rajhi Banking and Investment Corporation, Saudi Awwal Bank (SAB), Banque Saudi Fransi (BSF), Arab National Bank (ANB), Riyad Bank, and The Saudi Investment Bank (SAIB), said Saudi Energy in its filing to Saudi bourse.

The SAR15.8 billion funding will be utilised for general corporate purposes, providing Saudi Energy with additional financial flexibility to support its ongoing operations, strategic initiatives and future business requirements, it stated.

The financing has been secured on an unsecured basis, with no guarantees offered in connection with the facility, said the company in its bourse filing.

The agreement represents a significant financing arrangement for Saudi Energy and underscores the strong support of the kingdom’s banking sector for the company’s business activities and long-term growth strategy, it added.-TradeArabia News Service