Ma’aden Phosphate Company (MPC), the joint venture between the Saudi Arabian mining company (Ma’aden) and Saudi Basic Industries Corporation (Sabic) has concluded financing agreements totalling over US$3.7bn in support of their phosphate project.
MPC is aiming to be a fully-integrated phosphate fertiliser producer through developing a phosphate deposit at Al Jalamid in the north of Saudi Arabia. The company is working on the development, design, construction and subsequent operation of two primary sites, one being the Al Jalamid mine site, and the second being the Ras Az Zawr site on the eastern coast of the Arabian Gulf where there is a fertiliser production facility.
The US$3.7bn financing package features a number of syndicated loans: US$2.06bn 16-year conventional and Islamic facilities; a US$200mn 16-year Korean Export Insurance Corporation (KEIC) covered facility; a US$400mn 16-year facility from the Export-Import Bank of Korea Kexim); and a US$100mn revolving working capital facility. The syndicated facilities are said to have been oversubscribed.
The Public Investment Fund in Saudi will be providing direct funding amounting to US$1.067mn, and the Saudi Industrial Development Fund will be providing a direct loan of US$135mn.
Speaking at the signing ceremony, Dr Abdallah Dabbagh, president and CEO of Ma’aden and chairman of Ma’aden Phosphate Company, remarks: “We are very pleased today to be signing these documents which represent a major forward step for the delivery of our phosphate project. It is worth noting that these facilities were oversubscribed despite challenging market conditions.”
“This loan facility along with the funds expected to be raised in Ma’aden’s forthcoming IPO moves us much closer to seeing this project become a reality. We have already begun construction of a number of plants at the Al Jalamid and Ras Az Zawr complexes are on schedule.”
The following banks participated in the financing: Al Rajhi Banking and Investment Corporation, APICORP, Arab Banking Corporation, Arab Bank, Arab National Bank, HSBC, Bank Al Jazira, Bank of Tokyo Mitsubishi UFJ, Banque Saudi Fransi, BNP Paribas, Calyon, Islamic Development Bank, Mizuho Corporate Bank Ltd, Riyad Bank, Royal Bank of Scotland, Samba Financial Group, Saudi British Bank, Saudi Hollandi Bank, Saudi Investment Bank, and Standard Chartered Bank.
Standard Chartered Bank and Riyad Bank were financial advisors on the deal, and the legal advisors are Baker & McKenzie.
Reader Comments