The Saudi Electricity Company (SEC) has signed a $4.27 billion Shariah-compliant Murabaha financing facility with a consortium of regional banks to refinance existing debt. The three-year facility, concluded this week, includes an extension option subject to agreed terms. SEC confirmed that no guarantees were provided for the financing.

The participating banks include Saudi National Bank, Al Rajhi Bank, Saudi Awwal Bank, Banque Saudi Fransi, Arab National Bank, Riyad Bank, and Qatar International Islamic Bank.

The refinancing follows the SEC’s recent signing of an Energy Conversion Agreement with the Saudi Power Procurement Company for the purchase of electricity from the $1.4 billion Rabigh 1 Expansion Power Plant.

Located in Saudi Arabia’s Western Province, the Rabigh 1 Expansion Project is a combined cycle gas turbine facility with a total capacity of 1,179MW. The project is designed to strengthen generation capacity as electricity demand rises across the kingdom.

In December, the SEC also secured a $1 billion agreement with SACE, Italy’s export credit agency, to support the development and expansion of electricity projects nationwide. The international financing package involved HSBC, UBS, Citibank, ING Bank, Mashreq, Santander, BNP Paribas, BofA Securities, and BBVA.

Together, the agreements highlight the SEC’s active refinancing and funding strategy as it advances large-scale generation and infrastructure investments aligned with Saudi Arabia’s long-term power sector expansion plans.