Saudi Electricty Company (SEC) has signed the largest ever ECA-backed corporate financing in Saudi Arabia to develop the Rabigh VI thermal power plant on the Red Sea coast.
HSBC acted as the structuring bank, co-ordinating arranger and mandated lead arranger on the 15-year US$1.4bn loan.
The Bank of Tokyo Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation, Mizuho Corporate Bank and KfW Ipex Bank acted as mandated lead arrangers on the deal.
This project also marks SEC’s first Asian ECA financing, with Korean ECAs Korea Eximbank (Kexim) and Korea Trade Insurance Corporation (K-Sure) backing the transaction.
SEC signed a US$3.4bn turnkey contract on September 28, 2010 with Doosan Heavy Industries and Construction who are acting as the sole engineering, procurement, construction (EPC) contractor for the plant. Doosan will also design, supply, install and commission the entire plant consisting of four units of 700 MW, set for commissioning in November 2014.