largest ECA corporate financing ever in Saudi Arabia
HSBC has signed the largest ECA corporate financing ever in Saudi Arabia, a USD 1.4 billion 15-year facility for Saudi Electricity Company, the largest utility company in the Middle East. This financing will result in a new 2,800 MW thermal power plant at the Rabigh site on the Red Sea coast 150 kilometers north of Jeddah and will serve homes and business throughout the country. This will be the largest plant ever being built as a single project in the Western region of Saudi Arabia.
One of the key benefits of this new plant to the Kingdom is that it will help meet its long term power demands, which peak in the summer months. This has been one of SEC's key priorities over the past few years. Demand for electricity is expected to increase in the short to medium term as a result of increased Government-sponsored industrialisation and population growth. This new addition is part of SEC's efforts to increase its generation capacity in order to meet anticipated future power demands. SEC plans to increase its installed generation capacity by 15,571 MW to 57,583 MW by the end of 2016 at an estimated total cost of around USD25bn
Olivier Khalife, Director in HSBC's project and export finance team, said: "This new plant will further help the Kingdom meet its growing power demands. Saudi Arabia is undergoing a phase of rapid development as it develops its infrastructure and Rabigh VI will go some way to ensuring that the country has reliable and effective power supplies."
The equipment utilises the latest Korean power technology and the import of this is supported by both Korean Government's Export Credit Agencies ("ECA") Korea Eximbank ("K-EXIM") and Korea Trade Insurance Corporation ("K-SURE"). Export credit agencies such as these (ECAs) provide financing services such as guarantees, loans and insurance to companies in order to promote exports in the domestic country. The main objective of ECAs is to provide long term financing solutions for foreign buyers of capital goods and services.
HSBC acted as Structuring Bank, Co-Ordinating Arranger and Mandated Lead arranger, leading a group of four other banks consisting of The Bank of Tokyo Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation, Mizuho Corporate Bank and KfW Ipex Bank.
HSBC Awards
Euromoney Islamic Finance Awards 2012
Best Project Finance House
Best International Islamic Bank
Best Deal of the Year: Axis Financing
Best Sukuk Deal: Republic of Indonesia Sukuk
Most Innovative Deal: HSBC Middle East Limited Sukuk
The Asset Triple A Islamic Finance Awards 2011
Best Islamic Bank, Saudi Arabia - HSBC Saudi Arabia
Best Islamic Investment Bank, Asia - HSBC Amanah
Best Islamic Investment Bank, Middle East - HSBC Amanah
Sukuk House of the Year - HSBC Amanah
Euromoney Awards for Excellence 2011
Best Debt House in Middle East
Best Risk Advisor in Middle East
Best at Cash Management in Middle East
Best Investment Bank in Saudi Arabia (HSBC Saudi Arabia)
Euromoney Islamic Finance Awards 2011
Best Sukuk House
Best International Islamic Bank
-Ends-
HSBC in the MENA Region
HSBC is the largest and most widely represented international banking organisation in the Middle East and North Africa (MENA), with a presence in 14 countries across the region. HSBC has operations in the United Arab Emirates, Egypt, Qatar, Oman, Bahrain, Kuwait, Jordan, Lebanon, Pakistan, Algeria and the Palestinian Autonomous Area. In Saudi Arabia, HSBC is a 40% shareholder of Saudi British Bank (SABB), and a 49% shareholder of HSBC Saudi Arabia for investment banking in the Kingdom. In Iraq, HSBC holds a majority shareholding in Dar Es Salaam Investment Bank. HSBC also maintains a representative office in Libya.
This presence, the widest reach of any bank in the region, comprises some 273 offices and around 12,000 employees. In the full year 2011, HSBC in the MENA region made a profit before tax of US $1,492 million.Charles Clarke
For more information, contact:
Senior Manager, Corporate Communications
Global Banking and Markets and HSBC Amanah
HSBC Bank Middle East Limited
Tel: 971 4423 5640
Email: charleswclarke@hsbc.com
© Press Release 2012
