Saudi Electricity CEO expects syndicated Islamic loan to lower weighted average cost of finance

Saudi Electricity Co.’s (SEC) syndicated Murabaha local facility will extend the average of maturity of the company’s financing mix, CEO Fahad Al-Sudairi told Argaam in an exclusive, expecting the agreement to reflect positively on reducing the weighted average cost of finance.

Al-Sudairi explained that the financing is part of the company’s plan to finance its general purposes and capital projects, the most important of which is the smart meters project, improving network reliability and linking new projects.

SEC will continue to enhance its operating efficiency, boost operation automation and improve subscriber services, Al-Sudairi added.

The utility provider signed, on August 26, a syndicated Murabaha facility agreement with a number of local banks for a total value of SAR 9 billion for seven years, Argaam reported last week.