A group of Japanese lenders has issued a US$366mn loan for the construction of a 2,650MW power plant in Jeddah, Saudi Arabia.

The loan has been arranged by BTMU and Mizuho and is guaranteed by Nexi and JBIC. It has a 12-year tenor, with a three-year grace period.

The borrower is Saudi Electricity Co (SEC), which is expected to follow up the loan with another debt package from South Korea. The second package is set to be worth more than US$1.6bn.

South Korea’s Hyundai Heavy Industries will build the oil-fired plant, with equipment coming from Mitsubishi Heavy Industries of Japan. The project is expected to reach completion in 2016.