Saudi Arabian Mining Company (Maaden) announces that its subsidiary Maaden Waad Al Shamal Phosphate Company (MWSPC) has signed new financing agreements for USD 2.3 billion with leading local and regional financial institutions. The proceeds from these agreements will be used to pay down the existing loans.
Maaden Waad Al Shamal Phosphate Company has also completed the amendment, rescheduling and transfer of a USD 1.8 billion loan, previously held with the Public Investment Fund, to the Public Pension Agency.
The new financing facilities provide attractive and flexible corporate loan terms and conditions in place of the more restrictive project financing terms and conditions originally put in place. The “covenant-lite” terms of the refinancing arrangements, combined with an extended debt repayment schedule, are a step towards significantly strengthening the long term cash flow position for Saudi Arabian Mining Company (Maaden) as part of its strategy to pursue new growth and development projects.
The financial institutions who supported this deal are Alinma Bank, the National Commercial Bank, Al-Rajhi Bank, Bank Albilad, Riyad Bank, Saudi British Bank, Bank AlJazira, Samba Bank, and Saudi Fransi Bank.
Commenting on the announcement, Maaden’s Chief Executive Officer, Mosaed Al Ohali, said: “We are proud of the strong appetite from banks to lend to Maaden MWSPC during the current challenging market conditions. This is a reflection of our financial strength and growth prospects and the durability of our assets. With abundant phosphate deposits in the north of Saudi Arabia, Maaden is well placed to build on its position as a leader in the global phosphates market and make Saudi Arabia a major contributor to global food security.”
“The mining sector is the ‘Third Pillar’ of Saudi industry and is considered one of the most important sectors for achieving the goals of Vision 2030, alongside the petroleum and petrochemicals sectors, as it strongly supports economic growth and job creation in remote areas.”
The MWSPC integrated phosphate fertilizer production complex, located at Waad Al Shamal Minerals Industrial City, is considered one of the largest in the world. It comprises a USD 8 billion joint venture investment between Maaden (60%), SABIC (15%), and The Mosaic Company (25%).
For more information, visit http://www.maaden.com.sa/.