Saudi Electricity gets $13.2bn government loan
State-owned company granted interest free loan by Ministry of Finance.
State-owned power utility Saudi Electricity Co (SEC) has agreed terms and signed an interest-free loan of SAR 49.4 bn ($13.17 bn) with the Kingdom's Ministry of Finance.
The loan has a lifespan of 15 years but there is a grace period of ten years before repayments begin, the company said in a statement on Thursday.
SEC in March said a royal decree had granted it the soft loan to help fund power generation projects, subject to the completion of talks with the ministry, Reuters said.
The company plans to spend SAR 622 bn to add 40,000 MW of installed generating capacity by 2023 and expand transmission and distribution networks, SEC chief executive Ziyad Alshiha said at the time.