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

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

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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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