Hourani advises Saudi Electric Company in $566.4 million financing facility for Egypt electricity interconnection project

Hourani & Partners has advised Saudi Electric Company (SEC) with their negotiations of a $566.4m export credit agency (ECA)-backed facility agreement with Standard Chartered Bank (SCB) and Sumitomo Mitsui Banking Corporation to facilitate a Saudi Arabia-Egypt electricity interconnection project.

 
The financing, spread out over 14 years, will be funded by Swedish Export Credit Corporation and guaranteed by the Swedish Export Credit Agency. The interconnection project is the first large-scale, high-voltage direct interconnection between the Middle East and North Africa. The project comes off the back of Egypt and the Kingdom signing $1.8b worth of contracts to connect power grids between the two countries.

SEC is a government owned utility company responsible for generating, transmitting and distributing electricity across the Kingdom. It has over 45 power generation plants in the country serving various consumers including agricultural, commercial, residential and industrial.

The transaction was led by Mustafa Kamal and supported by Khalid Alhamdan, Ellen Ray, Sophia Niazi.