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 July, 6. Several other Japanese banks participated in the 12-year facility, including MUFG and Bank of Yokohama, Arab News reports.
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.