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 Japan’s Bank of Tokyo-Mitsubishi, Germany’s Deutsche Bank and Spain’s Santander in May. The finance was for the $3.2bn Shuqaiq power plant.

SEC is considering moving back to the independent power project (IPP) model for future capital spending, in response to lower oil revenues. Potential IPPs include Jeddah South and PP15.