Maaden Waad Al-Shamal Phosphat signs SAR 18.9bn financing agreements

Saudi Arabian Mining Company (Maaden) said that its subsidiary (Maaden Waad Al Shamal Phosphate Company) signed SAR 18.9bn (USD 5bn) financing agreements with the Public Investment Fund and a number of local and regional commercial banks and other financial institutions.

The banks and financial institutions included Al Rajhi Banking and Investment Corporation, Alinma Bank, Banque Saudi Fransi, Riyad Bank, Samba Financial Group, The Saudi British Bank, The Saudi Investment Bank, The National Commercial Bank, BNP Paribas Saudi Arabia, Arab Petroleum Investments Corporation (APICORP), Islamic Development Bank, HSBC Bank Middle East Limited, KfW IPEX Bank GmbH, Mizuho Bank Limited, Sumitomo Mitsui Banking Corporation, The Bank of Tokyo-Mitsubishi UFJ Limited, Export Development Canada, The Export-Import Bank of Korea, and Korea Trade Insurance Corporation.

The credits have a term of 16.5 years and will be repaid on semi-annual installments starting from 31 December 2018.

The amount was granted without any corporate financial guarantees and will be used in financing the development and construction of Maaden Waad Al Shamal Phosphate Project; the company said in its filing to Tadawul today.  

The total cost of the project is estimated at SAR 28 billion (USD 7.5 billion), and the new facilities are expected to commence production late 2016.

Saudi Arabian Mining Company (Maaden), The Mosaic Company and Saudi Basic Industries Corporation (SABIC) own 60%, 25% and 15% of the joint venture, Waad Al Shamal Phosphate project, respectively.

Maaden has announced in December 2013 receiving letters of commitments from a number of local and international banks and financial institutions amounting to SAR 15.75bn (USD 4.2bn) to partially finance Waad Al Shamal Phosphate project; data compiled by Argaam Shows.