Wednesday , June 23 2021

Softbank offers Deutsche Bank an investment in Saudi Arabia's electricity industry



Softbank informed Deutsche Bank about its plans to invest in the electricity sector in the Kingdom of Saudi Arabia.

The Japanese group, which plans to invest in the largest solar power plant in the UK, has shown interest in distributing electricity to the world's largest oil exporter.

Source Softbank may consider purchasing a minority stake in Saudi Arabia state-owned companies, a state-owned Royalty's sovereign fund.

"They want to be a minority shareholder," says the source.

The State Investment Fund has a 74% share in Saudi Arabia. Saudi Arabia is another major shareholder with 7% share.

The representative of Softbank declined to comment. The State Investment Fund and Deutsche Bank refused to comment, and Saudi Arabia did not respond to the Reuters clarification.

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In March, Softbank announced that it has signed an agreement with Saudi Arabia to establish the world's largest solar power plant by 2030, according to Masayoshi Son CEO.

According to the third source, additional data on the project is expected in the first quarter of next year.

The Sun retained Saudi Arabia's relationship with Saudi Arabia after Saudi Arabia complained against Saudi Arabia journalist Jamal Hashogh's death in Consulate Consulate in Sofia.

Saudi Arabia has provided half of the $ 93 billion raised by Softbank for the Fund. The Fund has become one of the major funding options for technology companies around the world.

Saudi Arabia experiences a transitional period and reduces dependence on oil. The Kingdom sees solar energy and considers it a way to reduce the amount of raw materials used to generate electricity at home and increase exports to overseas.

The government also plans to privatize a Saudi energy company. The government plans to distribute the largest communal company in the Persian Gulf to individual citizens through publicly available public offerings or through local and international partners.

But this plan was delayed, as the king revised energy subsidies to reduce domestic consumption and reduce waste.

The state will gradually increase energy prices by 2020, which will help the company to achieve a sustainable financial model.

Saudi Arabia has increased capital by borrowing to meet its commodity demand. The company's debt amounts to more than 160 billion riyal ($ 42.7 billion), half of them being commercial loans.


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