Maaden JV said to pick banks for sukuk issue

Maaden Phosphate Co. (MPC), a 70 percent-owned subsidiary of Saudi Arabian Mining Co. (Maaden), has hired banks to arrange a potential SAR 4 billion riyal-denominated sukuk, Reuters reported. 

BNP Paribas Investment Co KSA, HSBC Saudi Arabia and NCB Capital are lead managers on the deal, while National Commercial Bank (NCB) will be coordinating it.

The sukuk is planned to be issued in the first week of February. It will have a hybrid mudaraba and murabaha structure, and a seven-year tenor.

MPC is a joint venture between Maaden (70 percent) and SABIC (30 percent).

Proceeds will be used for general corporate purposes, including repayment of existing sharia-compliant financial obligations.

MPC borrowed $4 billion in project finance facilities in 2010 as part of project costs of about $5.5 billion for its facilities.