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Overview

Bank of China contributes to a $2.5775 billion USD revolving credit facility to Saudi Electricity Company for general corporate and refinancing purposes

Commitments (Constant USD, 2023)$216,074,552
Commitment Year2021Country of ActivitySaudi ArabiaDirect Recipient Country of IncorporationSaudi ArabiaSectorEnergyFlow TypeLoan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 8, 2021
Last repayment (originally scheduled)
Sep 7, 2024

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Abu Dhabi Islamic Bank PJSC (ADIB)
  • HSBC Bank Middle East Limited
  • JPMorgan Chase Bank, N.A. (Chase Bank, formerly the Chase Manhattan Bank)
  • Standard Chartered Bank PLC

State-owned Banks

  • First Abu Dhabi Bank PJSC (FAB)

Receiving agencies

State-owned companies

  • Saudi Electricity Company (SEC)

Loan description

BoC contribution to 2021 syndicated $2.5775 billion USD loan facility for the Saudi Electricity Company's general corporate and refinancing purposes

Interest typeUnknownMaturity3 years

Narrative

Full Description

Project narrative

On September 8, 2021, a syndicate of 11 banks — including the Bank of China (BOC) — entered into a $2,577,500,000 USD syndicated revolving credit facility (RCF) agreement with Saudi Electricity Company (SEC) — a Saudi state-controlled energy and utility company — for general corporate and refinancing purposes. This loan carried a maturity period of three years and without. The proceeds were to be used by the borrower to refinance existing debt, specifically existing RCFs, and for its general corporate purposes including capital expenditures. In addition to BOC, the following lenders are known to have contributed to the loan syndicate: First Abu Dhabi Bank PJSC (FAB), Standard Chartered Bank, Abu Dhabi Islamic Bank PJSC (ADIB), JPMorgan Chase Bank N.A., and HSBC Bank Middle East Limited.

Staff comments

1. Saudi Electricity Company (Arabic: الشركة السعودية للكهرباء; SEC) is the Saudi electric energy company. It enjoys a monopoly on the generation, transmission and distribution of electric power in Saudi Arabia through 45 power generation plants in the country. The company is 81.24% owned by the Government of Saudi Arabia, both directly (74.31%) and through Saudi Aramco (6.93%). 2. The individual contributions of the 11 banks to this $2,577,500,000 USD RCF are unknown. For the time being, AidData has estimated the contribution of BOC by assuming that each lender contributed equally ($234,318,181.818 USD) to the loan syndicate.