Maaden secures loans for phosphate project
Riyadh, June 16, 2008
Saudi state-owned mining company Maaden, which plans an initial public offering next month, said it had secured loans worth several billion dollars from Saudi and Korean institutions for its phosphate project.
A statement on the official Saudi Press Agency (SPA) said the financing included direct loans of $1.07 billion from the Public Investment Fund and $135 million from the Industrial Development Fund.
The facilities included a loan from the Export-Import Bank of Korea (KEXIM). It has also signed a contract for insurance coverage for 16 years.
SPA cited Maaden chief Abdullah al-Dabbagh as saying this financing, in addition to the 9.25 billion riyals ($2.47 billion) it hopes to raise in next month's IPO, would cover the costs of a phosphate project it is developing with Saudi Basic Industries Corp (Sabic).
Maaden said last year the bill for the phosphate venture had soared to 21 billion riyals, 62 percent more than it had expected previously, due to a rise in labour and material costs on the international construction market. - Reuters