4 Saudi banks agree to finance Electroc Co. expansion

Ahram online, Tuesday 14 Dec 2010

New expansionary projects in the energy sector in Saudi Arabia by Saudi Electricity Co., Saudi Arabia’s state-controlled utility.

Saudi Electricity Co., Saudi Arabia’s state-controlled utility, signed a $1.3 billion Islamic finance agreement with four Saudi Arabian banks to pay for expansion plans in the Arab world’s biggest economy, according to Beltone Financials.

The murabahah credit agreement, a financing system compliant with Islamic law, was signed with the National Commercial Bank, Saudi British Bank, Banque Saudi Fransi and Samba Financial Group, said the Riyadh-based utility in statement to the Saudi bourse on 13 December.

"This is one of the many financing arrangements expected in the medium term as government invests to boost economic growth in the country and demand for various utilities increase," Beltone commented, referring to the recent government agreements aimed at enhancing the Kingdom's energy sector.

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