The Saudi Electricity Company (SEC) is to sign a SR5bn ($1.3bn) club Islamic financing with three local banks, it said in a regulatory statement.
The banks are National Commercial Bank, Banque Saudi Fransi and Samba Financial Group.
The Murabaha facility has a seven year tenor. SEC did not provide guarantees. It will use the finance for capital expenditure.
SEC agreed a $1.5bn direct trade finance agreement with International Commercial Bank of China (ICBC) in June 2016. The unsecured finance has a five-year tenor.
It also secured a $900m loan from Export-Import Bank of Korea (Kexim) and a group international lenders including Japans Bank of Tokyo-Mitsubishi, Germanys Deutsche Bank and Spains Santander in May. The finance was for the $3.2bn Shuqaiq power plant.