Saudi Electricity Co. (SEC) has signed a $1.4 billion loan agreement with international banks to finance the construction of a new power plant, it said in a statement posted in Arabic on the Saudi bourse website Saturday. The loan, which will be repaid over 15 years, was made by a group of international banks led by HSBC and also including Bank of Tokyo Mitusbishi, Sumitomo-Mitsui Banking Corporation, Bank Mizuho and a bank identified as German Development Bank for International Export Projects, said the statement in Arabic. The loan is backed by guarantees from Korean export credit agencies Korea Trade Insurance Corporation (K-Sure) and Export-Import Bank of Korea. The power plant is being constructed by a consortium led by Korea's Doosan Heavy Industries and Construction Companies. Earlier this month, Saudi Electricity priced a $1.75 billion two-part Islamic bond – the kingdom's first dollar-denominated issue since October 2010, when petrochemicals group Saudi Basic Industries Corp. (Sabic) launched a $1 billion five-year bond. Meanwhile, SEC launched $1.75 billion 2 part Islamic bond with tighter pricing on both the 5- and 10-year tranches. The $500 million 5 year portion was launched at a spread of 140 basis points over midswaps from 160 basis points over midswaps indicated earlier. The $1.25 billion 10 year tranche launched at 195 basis points over midswaps, tightening from around 210 basis points earlier. Demand for the bond was seen being very strong, given the rarity value of a dollar sukuk from a majority government owned Saudi corporate. The company's big investment needs over a long-term period allowed it to add a rare 10-year portion to its sukuk which would appeal to global investors. HSBC and Deutsche Bank were the mandated lead arrangers on the deal, which was expected to price.