Saudi Electricity Co. (5110.SA), or SEC, has signed a $1.4bn loan agreement with a consortium of international banks led by HSBC to help finance the construction of a power plant.

Dow Jones reports that the 15 year loan will be used to help finance the construction of SEC’s Rabigh VI power plant on the Red Sea coast to the north of Jeddah city, the utility said in a statement on the Saudi bourse website.

The loan is guaranteed by Korea Trade Insurance Corp., or K-sure, and by the Export-Import Bank of Korea, or Kexim, SEC said.

The lenders participating in the loan include, among others, Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corp, and Mizuho Bank, SEC said.

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