The Saudi Electricity Company signed, on Wednesday, a green credit facility agreement financed and guaranteed by the Japan Bank for International Cooperation (JBIC) in the amount of $500 million.
The Japan Bank for International Cooperation's share in the financing is $250 million, and the remaining amount is jointly financed by MUFG Bank, Yokohama Bank, and Bank of Yokohama. Joyo, Nantou Bank, Nishi Nippon City Bank, Hachijuni Bank, and Sann Judos Bank.
The Japan Bank for International Cooperation will also provide a guarantee for a portion of the share of co-financing by private financial institutions, and MUFG Bank has been appointed as the financial advisor for this financing.
The proceeds of the facilities will be used to finance the green projects of the Saudi Electricity Company in the field of electricity transmission and distribution, which contribute to increasing environmental protection, such as projects related to linking the national transmission network to power stations. Renewable energy and its integration with the grid, and projects to support energy efficiency and electrical system reliability.
Commenting on this agreement, Khalid bin Hamad Al-Qunun, CEO of the Saudi Electricity Company, said: The protection and supervision of the environment in the electricity sector in the Kingdom is one of the most important objectives of the Ministry of Electricity. Energy for long-term sustainability of the sector, and this fully aligns with the objectives of the Kingdom’s Vision 2030.
Al-Qunun added that the signing of the green credit facilities is in line with the company's objectives to exploit green financing opportunities that are consistent with promoting a smooth transition to diversify sources of electric energy production and long-term environmental and social sustainability. .
Moreover, this financing is the first of its kind for the company, as it is the company's first green credit facility agreement, which is the result of discussions and financial cooperation between the company and the Japan Bank for International Cooperation According to the memorandum of understanding signed between the two parties in December 2020, within the framework of the Saudi-Japanese Vision 2030.
