Saudi utility receives $1.4bn loan for power station

Saudi Electricity Co, the kingdom’s largest power producer, has received a $1.4bn loan that is guaranteed by the Export-Import Bank of Korea and the Korean Trade Insurance Corp. The 15-year loan will be paid in bi-annual installments after a three-year grace period, the Riyadh-based utility said in a statement on the Saudi bourse website on Saturday. The loan will be used for the construction of a power station in Rabigh on the Red Sea coast, the company said. The Arab world’s largest economy needs an additional 2,000 megawatts of electricity a year to meet demand the government forecasts will rise by 7 percent a year, according to Saudi Electricity data. HSBC Holdings, Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corp, and Mizuho Corporate Bank were among the banks that participated in the financing, the utility said in the statement. The Export-Import Bank of Korea also provided financing for the loan, the company said.