Riyadh, (Reuters) – Saudi Electricity Co has signed a $1.4 billion loan agreement with international banks to finance the constrution of a new power plant, it said in a statement posted in Arabic on the Saudi bourse website on Saturday.
The loan, which will be repaid over 15 years, was made by a group of international banks led by HSBC and also including Bank of Tokyo Mitusbishi, Sumitomo-Mitsui Banking Corporation, Bank Mizuho and a bank identified as German Development Bank for International Export Projects, said the statement in Arabic.
The loan is backed by guarantees from Korean export credit agencies Korea Trade Insurance Corporation (K-Sure) and Export-Import Bank of Korea.
The power plant is being constructed by a consortium led by Korea’s Doosan Heavy Industries and Construction Companies .
Earlier this month, Saudi Electricity priced a $1.75 billion two-part Islamic bond — the kingdom’s first dollar-denominated issue since October 2010, when petrochemicals group Saudi Basic Industries Corp (SABIC) launched a $1 billion five-year bond.