Saudi Electricity Co. (SEC) and its partners have refinanced their $1.14 billion loan for the Riyadh PP11 power plant, Reuters reported, citing unnamed sources with knowledge of the matter.
The new deal will replace the loan taken out in 2010 to fund the power plant, and follows a trend by many Gulf companies, who have sought refinancing amid low oil prices and tightened liquidity.
The new credit arrangement involves an 85 percent cash sweep, the sources said, and a mini-permanent structure normally used until construction is completed and the project becomes profitable.
The deal will be issued in two tranches, a U.S. dollar tranche totaling $505 million and two Islamic tranches totaling $635 million. Saudi Arabia’s National Commercial Bank, Alinma Bank, Samba Financial Group, Banque Saudi Fransi, and Saudi British will handle the Islamic tranche.
The power plant, located in Dhuruma, is 50 percent owned by SEC and became operational in 2013.
Comments
{{DisplayName}}
{{ElapsedTime}}