Saudi Energy Unit Closes $2.58B Debt Package for Rabigh 2 Plant

Al Morjan Two Electricity Company, a Saudi Energy affiliate, has completed the debt package for the Rabigh 2 expansion, raising $2.58 billion (SAR 9.69 billion). The details appeared in a Saudi Exchange filing published on Sunday.

The facility carries a tenor of about 34 years. It funds the development, construction, ownership and operation of a 2.3 GW combined-cycle gas turbine plant in Makkah province. Provision for a carbon capture unit is built into the design.

Guarantees and timelines

Saudi Energy's guarantees connected to the borrowing are limited to its standby equity and reserve account. The project is expected to begin affecting the company's operating results from the second quarter of 2029.

Two clocks run on different schedules. The debt matures in roughly 34 years. The power purchase agreement runs for 31 years from the plant's commercial operation date.

The lending group

Domestic, regional and international banks make up the syndicate. Abu Dhabi Commercial Bank, Alinma Bank, Boubyan Bank, Commercial Bank of Dubai, HSBC Bank Middle East, Riyad Bank, Saudi Awwal Bank and Saudi National Bank are among the participants.

China Minsheng Banking Corp., Industrial and Commercial Bank of China, Industrial Bank Co., National Bank of Greece, Standard Chartered Bank and Sumitomo Mitsui Trust Bank also took part, along with other lenders named in the filing.

The purchase agreement

Saudi Energy signed the power purchase agreement with Saudi Power Procurement Company in April. It is valued at $3.1 billion (SAR 11.5 billion) and covers development, financing, construction, ownership and operation of the natural gas-fired combined-cycle plant, as well as the development and construction of an extension to a 380-kilovolt electrical substation.

Saudi Exchange records show Saudi Energy holds a 40% effective interest in the project.

Scale and recent deals

Saudi Energy owns about 56 GW of generation capacity, equal to roughly 60% of Saudi Arabia's national capacity, and serves more than 11.5 million customers.

In 2025 the company raised $3.4 billion for the Rumah 1 and Nairyah 1 power projects, and $2.9 billion alongside Acwa for the Qurayyah IPP expansion.

It ranked 36th in a 2026 list of the region's 100 most valuable companies, with a market value of $16 billion based on closing prices on January 31, 2026. As of October 4, 2026, its market capitalisation stood at about $17.3 billion (SAR 64.8 billion).