SEC seeks finance of up to $5bn, Reuters says

Saudi utility looking to tap the debt market amid talk of acquisitions, news agency says.

Sec, News

Saudi Electricity Co (SEC) is in talks with local and international banks to raise a multi-billion-dollar loan, according to Reuters.

The Gulf's largest utility firm is in the market for between $3bn and $5bn in total, the news agency reported citing two unnamed sources.

"The company is trying to mop up cash it can get at a good price point from the market. They are exploring all options available in the debt market," the first source said.

Chief Executive Ziyad al-Shiha told Reuters in May the firm was looking for investment opportunities to offset financial pressures on its core electricity business.

Meanwhile SEC on Tuesday revealed a 46.1% drop in second quarter net profit to SAR 1.97bn ($525.3mn).

Second quarter earnings last year were boosted by a SAR 2.63bn gain after it was paid debt owed by high-profile customers.


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