Buyer's Credit for Saudi Electricity Company

--First Loan for Power Sector in Saudi Arabia--

Dubai, United Arab Emirates - Sunday, December 22nd 2013 [ME NewsWire]

The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a buyer's credit (export loan) agreement totaling up to 183 million U.S. dollars (JBIC portion) with the state-owned Saudi Electricity Company (SEC). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (lead arranger) and Mizuho Bank, Ltd.[1] which brings the overall cofinancing amount to 366 million U.S. dollars.

The loan is intended to finance SEC, which engages integrally in electric power generation, transmission and distribution in the Kingdom of Saudi Arabia (Saudi Arabia), for the purchase of a set of machinery and equipment for power generation, including steam turbines and boilers, from Mitsubishi Heavy Industries, Ltd., as it builds a supercritical pressure thermal power station (4×723 MW) at Jeddah, Makkah Province in western Saudi Arabia.

This is the first Saudi power generation project that adopted a supercritical pressure power generation system, which makes efficient use of the oil produced there, in order to meet growing demand for electricity in Saudi Arabia. As it is also foreseen that needs for highly efficient supercritical pressure power generation will continue to increase in Saudi Arabia, the world's largest oil producer, this JBIC loan in support of the export of machinery and equipment for power generation by a Japanese company will thus increase business opportunities for other Japanese companies having high technological capabilities in this sector and contribute to the maintenance and improvement of the international competitiveness of Japanese industries.

As a public institution, JBIC will continue to support the expansion of exports of Japanese companies to Saudi Arabia as well as opportunities for Japanese companies to participate in the country's projects, by drawing on its financial facilities and schemes for structuring projects and performing its risk-assuming function.

[1] Nippon Export and Investment Insurance (NEXI) provides Export Credit Insurance for the portion cofinanced by The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mizuho Bank Ltd.

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