Saudi Electricity Company (SEC) has signed a $1.5bn direct trade finance agreement with International Commercial Bank of China (ICBC).

The unsecured finance has a five-year tenor. It will be used for capital expenditure projects.

Chinese contractors such as Shandong Electric Power Construction Corporation (Sepco III) are increasingly active in the GCC power market.

As Saudi Arabia pushes ahead with meeting renewables targets, Chinese suppliers will also become important.

SEC secured a $900m loan to fund the construction of the Shuqaiq power plant from Export-Import Bank of Korea (Kexim) and a group of international lenders in May.

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