Saudi Electricity Company has secured a new five-year loan of up $1.5 billion, marking its third major financing deal in less than six months. The latest move shows how the company is working to strengthen its financial base while supporting Saudi Arabia’s fast-growing power infrastructure. The financing package begins with a base size of $1 billion, with an option to increase the total amount to $1.5 billion through a greenshoe mechanism. The loan carries all-in pricing of 100 basis points, including a 75-basis-point participation fee. Sumitomo Mitsui Banking Corp led the arrangement, acted as bookrunner, and served as underwriter for the deal. The company plans to use the new funds for general corporate purposes, ensuring strong liquidity to manage its large and expanding operations.
This loan comes after a period of high financial activity for the utility. In October, the company signed a $2.85 billion agreement with a syndicate of regional and international banks. That funding was dedicated to major projects in power generation, transmission, and distribution. A month earlier, in September, the company successfully closed another $1 billion five-year loan. That transaction drew strong interest from almost two dozen lenders, showing rising confidence from the banking sector in the strength and stability of the Saudi energy market. The repeated support from lenders indicates a positive view of the company’s financial performance and its long-term strategy.
Saudi Electricity Company is the main power provider in the Kingdom. Its role is central to national development and Vision 2030 targets, which aim to expand and modernize the energy sector. The ownership structure highlights the company’s strategic value, with the Public Investment Fund holding a 74.3 percent stake and Saudi Aramco owning 6.9 percent. These large state-linked shareholders reinforce the company’s stability and importance. With these latest financing arrangements, the company is better positioned to upgrade the national grid, improve service reliability, and meet the rising energy needs of both industries and households. The strong interest from global financial institutions reflects continued trust in Saudi Arabia’s utility sector and its long-term growth potential.
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