RIYADH: State-owned Saudi Electricity Co. has obtained $568 million in financing to fund the Saudi-Egypt electricity interconnection project.

The Fund, which has a term of 14 years, is backed by Swedish Export Credit Corporation, Standard Chartered Bank, and Sumitomo Mitsui Banking Corp., according to a bourse filing.

Saudi Arabia and Egypt signed an agreement to establish an electrical interconnection in 2012 for the purpose of being the main axis in the Arab electrical linkage, which aims to create an infrastructure for electricity trade between Arab countries.

In October of last year, the two countries signed contracts for a $1.8 billion electricity interconnection project to ensure an exchange of 3,000 MW of electricity between both nations.

In a separate announcement, the utility firm announced that it has also obtained a syndicated loan of $3 billion from a number of international banks.

As part of the five-year syndicated loan, the company will refinance an existing international syndicated facility. This will include, without limitation, capital expenditures.

The financing entities include Standard Chartered Bank, HSBC Bank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation, Industrial and Commercial Bank of China, and State Bank of India.

Following the announcement, shares of SEC closed Thursday’s trading session 0.58 higher percent at SR26.05.

Established in 1999, Saudi Electricity produces electricity through 45 power plants and owns transmission and distribution networks throughout the Kingdom.

It is majority-owned by the government at 74.3 percent, while Saudi Aramco owns 6.9 percent.

In the last earnings report by the firm, it reported a 10 percent decline in profit to SR1.5 billion for the first quarter of 2022.