A US $4.1bn shariah-compliant Murabaha financing facility has been secured by Saudi Energy, the Kingdom’s primary electricity service provider. The facility was secured from a consortium of 7-leading Saudi banks.

Saudi Energy said that the funding will be utilised for general corporate purposes, and will give it additional financial flexibility to support its ongoing operations, strategic initiatives and future business requirements.

The financing has been secured on an unsecured basis, with no guarantees offered in connection with the facility, said Saudi Energy in its filing to the Saudi bourse.

The financing facility has a tenure of 7-years from the date of signing (27 July). It was arranged by Saudi National Bank (SNB), Al Rajhi Banking and Investment Corporation, Saudi Awwal Bank (SAB), Banque Saudi Fransi (BSF), Arab National Bank (ANB), Riyad Bank, and The Saudi Investment Bank (SAIB), said Saudi Energy in its bourse filing.

The agreement is said to represent a significant financing arrangement for Saudi Energy and underscores the strong support of the Kingdom’s banking sector for the company’s business activities and long-term growth strategy.