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Overview

ICBC provides a $1.5 billion USD loan to Saudi Electricity Company for working capital and capital expenditure purposes

Commitments (Constant USD, 2023)$1,636,082,359
Commitment Year•2016Country of Activity•Saudi ArabiaDirect Recipient Country of Incorporation•Saudi ArabiaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 29, 2016
First repayment (originally scheduled)
Dec 28, 2018
Last repayment (originally scheduled)
Jun 28, 2021

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

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

State-owned companies

  • Saudi Electricity Company (SEC)

Loan description

ICBC provides a $1.5 billion USD loan to Saudi Electricity Company for working capital and capital expenditure purposes

Grace period•2.5 yearsInterest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

On June 29, 2016, the Industrial and Commercial Bank of China (ICBC) signed a $1.500 billion USD (SAR 5.626 billion) direct commercial loan agreement with Saudi Electricity Company (SEC) — a Saudi state-controlled energy and utility company — for working capital and capital expenditure purposes. This loan carried a maturity period of five years, a grace period of 2.5 years, had a repayable schedule consisting of six semi-annual repayment installments beginning on December 20, 2018, a final maturity date in 2021, and was without guarantees or security. The proceeds were to be used by the borrower for working capital purposes and to finance some of SEC's capital projects, such as trading and manufacturing. As of December 31, 2016, the entire $1.5 billion USD loan had been drawn down. As of January 1, 2020, SAR 2,813,023,000 was outstanding under this loan. As of December 31, 2020, SAR 936,933,000 was outstanding under this loan, as SAR 1,875,788,000 had been repaid by the borrower during 2020. In 2021, the borrower repaid the outstanding balance of SAR 936,933,000, fully repaying the entire loan.

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%).