Saudi Electricity signs over $4B financing deals

Signing the agreement

Saudi Electricity Co. (SEC) signed a series of strategic agreements with several local and international financial and technology institutions, worth more than $4 billion, during the ninth edition of the Future Investment Initiative (FII9) held in Riyadh.

These agreements aim to enhance the efficiency and sustainability of the Kingdom’s power sector by diversifying funding sources, improving working capital efficiency, and accelerating the implementation of strategic electricity and infrastructure projects, the Saudi Press Agency reported.

The move reflects global confidence in SEC’s financial strength and its pivotal role in enabling the national power industry, in line with the Vision 2030 development goals.

The company signed a $3 billion international financing agreement with a consortium of global banks. The group includes China Construction Bank, Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), China Guangfa Bank (CGB), China Minsheng Banking Corp., China Merchants Bank Co. Ltd., Bank of East Asia (BEA), ING Bank, Barclays, HSBC, Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Dubai Islamic Bank (DIB), and Emirates NBD.

The agreement will strengthen SEC’s liquidity position and broaden its global financing base to support large-scale power generation, transmission, and distribution projects across the Kingdom.

SEC also signed a $1 billion framework financing agreement with the Swiss Export Risk Insurance (SERV) and Standard Chartered Bank (SCB) to support its strategic projects through export credit agency financing, contributing to funding diversification and improved working capital efficiency.

In addition, the company announced an innovative supply chain financing program in partnership with Manafa Co., a Saudi debt crowdfunding company.

Manafa is authorized by the Saudi Central Bank (SAMA) to test supply chain financing (SCF) services in the Kingdom within the regulatory sandbox.

The company also signed contracts with SAP Taulia, a global leader in working capital management solutions, and with the Saudi Industrial Development Fund (SIDF), a key financier and enabler of national industrial growth.

The program aims to improve working capital efficiency through innovative digital solutions that allow suppliers to receive early payments, while supporting digital transformation in supply chain management through automated platforms that enhance efficiency and transparency.