Utilities Saudi Electricity seeks $1bn loan for new projects By Pramod Kumar June 17, 2025, 9:53 AM Alamy via Reuters Fuse boxes in a street in Jeddah, Saudi Arabia. Saudi Electricity Co has been expanding facilities to meet the country's growing power demand Saudi Electricity Co, 74.3 percent owned by the Public Investment Fund, is reportedly raising SAR3.8 billion ($1 billion) to fund new projects. The loan will have a five-year tenor and pay an interest margin of nearly 85 basis points over US treasuries, Bloomberg reported, quoting unnamed sources. Japan’s Sumitomo Mitsui Banking Corporation is acting as the sole mandated lead arranger and bookrunner for the deal, the report said. The company has been expanding existing facilities, such as the Qurayyah power plant, to meet the growing power demand in the country. The news comes amid escalating geopolitical tensions in the region, as a result of ongoing strikes between Iran and Israel. In August 2024, Saudi Electricity obtained SAR15 billion ($4 billion) in funding from 15 regional and global banks. Saudi Arabia and UAE set to import electricity from India UAE and Saudi Arabia target India and EU electricity exports Thirsty for data: water scarcity challenges Gulf’s AI ambitions Earlier in May, the company secured a $1 billion Islamic credit facility from Saudi National Bank, the largest bank by assets in the kingdom. Capital expenditures surged 162 percent in the first quarter of 2025 to SAR28 billion, according to the company’s investor presentation. The company’s net profit grew 8 percent year on year to SAR968 million in the first quarter of 2025 as revenue rose 23 percent annually to SAR16 billion. Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later Register now: It’s easy and free AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East. Why sign uP Exclusive weekly email from our editor-in-chief Personalised weekly emails for your preferred industry sectors Read and download our insight packed white papers Access to our mobile app Prioritised access to live events Register for free Already registered? Sign in I’ll register later
