Saudi Electricity agrees $500m green credit facility in ESG push

Green financing is on the rise across Gulf financial capitals such as Riyadh. (Reuters)

• Sustainability-linked green lending is gaining traction in the Gulf states as corporations respond to the growth in ESG investing

RIYADH: Saudi Electricity Company (SEC) has agreed a $500 million green lending facility.
The financing was guaranteed by the Japan Bank for International Cooperation (JBIC), to support SEC’s green projects across its transmission and distribution networks, the utility said in a stock exchange filing on Thursday. Several other Japanese banks participated in the 12-year facility, including MUFG and Bank of Yokohama.
Sustainability-linked green lending is gaining traction in the Gulf states as corporations respond to the growth in ESG investing.
“In the Gulf, sustainable development is increasingly important as governments focus on environmental, social and governance issues and attempt to implement strategic vision plans to diversify their economies, which include measures to boost renewable energy generation,” S&P said in a report last year.