Maaden said to approach banks to refinance subsidiary loan

Saudi Arabian Mining Co. (Maaden) plans to refinance around $1 billion in a bank loan raised for its subsidiary Maaden Bauxite and Alumina Company (MBAC), Reuters reported, citing unnamed sources.

The mining giant has appointed BNP Paribas and the National Commercial Bank (NCB) to advise on fundraising.

It has also been in talks recently with banks over a refinancing facility which is expected to be denominated in both Saudi riyals and US dollar.

The transaction is expected to be worth near $1 billion but has not been finalized, sources told the agency.

Established in 2009, MBAC is 74.9 percent-owned by Maaden and 25.1 percent-owned by Alcoa. It is one of three ventures owned jointly by the companies through which Maaden runs its aluminium operations.