Maaden subsidiary MPC closes SAR 3.5 bln sukuk

Saudi Arabian Mining Company's (Maaden) subsidiary Maaden Phosphate Company (MPC) has successfully completed its SAR 3.5 billion ($933.3 million) sukuk offering, the company said in a statement to Tadawul on Tuesday.

The proceeds will be used to replace a portion of MPC’s existing debt, it added.

The offering – consisting of 3,500 certificates with a nominal value of SAR 1 million each – was a single class unsecured instrument denominated in Saudi riyals and privately offered to commercial banks and financial institutions.

The sukuk has an expected return of 135 basis points over the Saudi Interbank Offered Rate (SAIBOR) and a maturity of seven years payable in one lump sum.

The redemption will either be scheduled redemption, or for tax reasons (at the option of MPC), or following a change of control (at the option of the sukuk holders).

MPC is a limited liability company co-owned 70 percent by Maaden and 30 percent by Saudi Basic Industries Corporation (SABIC).