The Saudi Electricity Company signed a $500 million green credit facility agreement financed and guaranteed by the Japan Bank for International Cooperation (JBIC).
JBIC’s stake in the financing is $250 million. The remaining amount is jointly financed by MUFG Bank, Yokohama Bank, Joyo Bank, Nantou Bank, Nishi Nippon City Bank, Hachigoni Bank, and Sann Judos Bank. JBIC will 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 will be used to finance the green projects of the Saudi Electricity Company. The projects are in the field of electricity transmission and distribution, which help protect the environment. These include projects related to linking the national transmission network to renewable energy plants and its integration with the network, and projects to support energy efficiency and reliability of the electrical system.
“In the Gulf, sustainable development is increasingly important as governments focus on environmental, social and governance issues and attempt to implement strategic vision plans to diversify their economies, which include measures to boost renewable energy generation,” S&P said in a report last year.
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