Saudi Electricity Company Locks $2.4 bln Financing Deal

The Saudi Electricity Company signed a local co-financing agreement worth 9 billion Saudi Riyals with 7 major banks in the Kingdom
The Saudi Electricity Company signed a local co-financing agreement worth 9 billion Saudi Riyals with 7 major banks in the Kingdom
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Saudi Electricity Company Locks $2.4 bln Financing Deal

The Saudi Electricity Company signed a local co-financing agreement worth 9 billion Saudi Riyals with 7 major banks in the Kingdom
The Saudi Electricity Company signed a local co-financing agreement worth 9 billion Saudi Riyals with 7 major banks in the Kingdom

The Saudi Electricity Company (SEC) has agreed on a 9 billion riyal ($2.4 billion) syndicated Islamic loan with seven major local banks.

The seven-year unsecured facility has a murabaha structure, a cost-plus-profit arrangement that complies with Islamic finance standards, and will be used for general corporate purposes, including capital expenditure.

The financing was provided by National Commercial Bank, Bank Albilad, Al Rajhi Bank, Riyad Bank, Samba Financial Group, Banque Saudi Fransi and Saudi British Bank.

Fahad Al-Sudairi, CEO of SEC, clarified that the company provides electrical services to a growing subscriber base, which currently stands at approximately 9.8 million users in the Kingdom.

SEC is constantly working to improve operational efficiency and make a quantum leap in automating its work and improving customer services.

Al-Sudairi explained that the financing is part of the company’s plan to finance its general purposes and capital projects, the most important of which is the smart meters project, improving network reliability and linking new projects.

“A smart meter is the next generation of a gas and electricity meter. Smart meters measure how much gas and electricity you’re using, as well as what it’s costing you and display this on a handy in-home display,” Al-Sudairi.

The meter reading shows the actual usage and users will be informed of how much the cost will be.

The plan is to install ten million smart meters before the end of March 2021.

Smart meters are considered one of SEC’s top projects for digital transformation, and represents the center of its strategy aimed at improving the level of services.

Al-Sudairi pointed out that the successful closing of this financing is a sign of strong confidence from local banks in SEC, which has a large and extended asset base throughout the Kingdom that plays a vital and necessary role in supporting and developing its economy in all its sectors.



Gold Slips as US Bond Yields Rise, Investors Assess New Tariffs

Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
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Gold Slips as US Bond Yields Rise, Investors Assess New Tariffs

Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo
Gold rings are displayed in a gold shop in Chinatown in Bangkok, Thailand August 21, 2018. REUTERS/Soe Zeya Tun/File Photo

Gold prices eased on Tuesday, weighed by higher US Treasury yields as US President Donald Trump announced new tariff proposals on trading partners, including Japan and South Korea.

Spot gold was down 0.2% at $3,328.67 per ounce, as of 1207 GMT. US gold futures fell 0.1% to $3,338.20.

The yield on benchmark US 10-year notes rose to a two-week peak, making the non-yielding bullion less attractive.

"Gold is stuck between a rock and a hard place," said UBS commodity analyst Giovanni Staunovo, Reuters reported.

"Negative for the gold price is the US decision to extend the deadline for a trade deal for many trade partners, positive for the gold price is the fact that key US trading partners in Asia might have to deal with higher tariffs in the near future, weighing on economic growth prospects."

On Monday, Trump told 14 countries that sharply higher tariffs would start on August 1, marking a new phase in the trade war he launched in April, with levies between 25% and 40%.

The new deadline was firm, Trump said, adding that he would consider extensions if countries made proposals for a trade deal.

"Reciprocal tariffs" were to be capped at 10% until July 9 to allow for negotiations, but so far, agreements have been reached only with Britain and Vietnam. In June, Washington and Beijing agreed on a framework covering tariff rates.

Meanwhile, China has warned the Trump administration against reigniting trade tensions and threatened to retaliate against nations that strike deals with the US to exclude it from their supply chains.

Trump's tariffs have stoked inflation fears, further complicating the US Federal Reserve's path to lower interest rates.

Investors await minutes of the Fed's June meeting, due on Wednesday, for more clues into the bank's policy outlook.

Spot silver fell 0.1% to $36.71 per ounce, platinum rose 0.2% to $1,372.51, and palladium rose 0.6% to $1,117.33.