Saudi Electricity Company has announced that it has signed a SAR16 billion ($4.27 billion) shariah-compliant Murabaha funding facility with a group of regional banks to refinance existing debt.

The three-year facility, which includes an extension option subject to agreed terms, was signed this week, the Saudi utility said in its filing to Saudi bourse Tadawul.

These regional banks are Saudi National Bank, Al Rajhi Banking and Investment Corporation, Saudi Awwal Bank, Banque Saudi Fransi, Arab National Bank, Riyad Bank and Qatar International Islamic Bank.

SEC said no guarantees were provided for the financing.

This come close on the heels of SEC signing the Energy Conversion Agreement (ECA) last month with the Saudi Power Procurement Company (Principal Buyer) for the purchase of energy produced from the SAR5.33 billion ($1.4 billion) Rabigh 1 Expansion Power Plant.

Located in the Western Province of Saudi Arabia, the Rabigh 1 Expansion Project is a large-scale Combined Cycle Gas Turbine (CCGT) power plant with a total production capacity of 1,179MW. 

SEC had signed a similar agreement with the Italian Export Credit Agency (SACE) worth $1 billion, in December last year aimed at supporting the development and expansion of electricity projects across the kingdom.

The consortium of the international financial institutions include HSBC, UBS, Citibank, ING Bank, Mashreq, Santander, BNP Paribas, BofA Securities and BBVA, highlighting strong global confidence in SEC’s financial strength and strategic direction.