Saudi Electricity Secures USD 2.4 Billion Syndicated Murabahah Agreement

The Saudi Electricity Company (SEC), Saudi Arabia’s main electricity producer, has secured a SAR 9 billion (USD 2.4 billion) syndicated Islamic financing agreement with seven major local banks, according to media reports.

The financing is a seven-year medium-term facility with a Murabahah structure, which is a cost-plus-profit arrangement that is compliant with Islamic finance standards.

Arranged and financed by the National Commercial Bank, Bank Albilad, Al-Rajhi Bank, Riyad Bank, Samba Financial Group, Banque Saudi Fransi and the Saudi British Bank, the facility will be used for general corporate purposes as well as financing capital expenses including smart meters, new int...