Marafiq, a utility services provider to two industrial cities in Saudi Arabia, has signed a SR2.5-billion ($666.1 million) Islamic loan, which will partly be used to expand capacities in its existing projects, it said in a statement on Wednesday.

The new long-term facility was arranged by HSBC's Saudi Arabian arm, the statement said, without revealing the tenor and pricing of the transaction.

The company, which counts Saudi Basic Industries Corporation (Sabic) and Saudi Aramco as shareholders, will use the murabaha-structured facility for capacity expansion plans in different projects located in Jubail and Yanbu.

A murabaha is a cost-plus-profit arrangement which is one of the most popular formats for structuring Islamic loans.

Al Rajhi Bank, National Commercial Bank, Riyad Bank, Samba Financial Group and Saudi British Bank joined the facility, the statement said.

Marafiq's last fundraising was its debut SR2.5-billion ($666.1 million) sukuk in 2013, and its previous syndicated murabaha facility transaction was for SR4.5 billion ($1.2 billion), which completed in 2012.-Reuters