SEC said to be seeking multi-billion dollar loan

Saudi Electricity Company (SEC) is in talks with local and international banks to borrow between $3 billion and $5 billion, Reuters reported, citing two people familiar with the matter.

The loans will be denominated both in Saudi riyals and US dollar. The riyal-denominated tranche is expected to be worth SAR 5 billion, with a lifespan of three years and an option to extend maturity, Reuters reported.

Both portions of the loan would be structured as revolving credit facilities, giving SEC the ability to opt when it wants to withdraw the cash, according to Reuters.

The Gulf’s largest utility company on Tuesday reported a 46.1 percent drop in net profit for the second quarter as it failed to repeat a one-time gain it recorded in the same period last year.