Maaden signs SR18.9bn financing deal for key phosphate project - 02-Jul-2014 Saudi Arabian Mining Co. (Maaden) has signed a financing deal worth SR18.9 billion ($5 billion) with commercial banks and the Public Investment Fund to back its SR28 billion ($7.5 billion) phosphate production project in the Kingdom. The project in the northern city of Waad Al-Shamal is a joint venture between Maaden, Saudi Basic Industries Corp. and Mosaic and is part of the Kingdom’s efforts to create a stronger industrial base beyond oil refining and export. Phosphate is commonly used in fertilizers. Maaden said in a statement that the new complex would create significant value to shareholders. A total of 16 local and international commercial banks, including Al-Rajhi Bank , Bank of Tokyo-Mitsubishi and BNP Paribas, as well as three export credit agencies and the Public Investment Fund (PIF) signed the financing agreement. The loan agreement will last for 16.5 years and repayments will be made on a semi-annual basis from Dec. 31, 2018. The scheme will have a production capacity of 16 million tons per year of phosphate concentrate, sulphuric acid, phosphoric acid, as well as plants to produce calcium monophosphate and calcium diphosphate, Ma’aden said previously, with phosphate production expected to start in late 2016. The rest of the funding is expected to come in the form of equity loans from the project sponsors. Maaden said in May it planned rights issue for SR5.6 billion ($1.5 billion) to support its expansion plans, although it didn’t specify how much would be used to fund the phosphate scheme.
Posted on: Wed, 02 Jul 2014 05:32:53 +0000
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