Monday 17 December 2018
 
»
 
»
Story

Saudi Maaden unit seals new loan amendment deal

RIYADH, July 21, 2018

Saudi Arabian Mining Company (Maaden) said its subsidiary Maaden Bauxite and Alumina Company (MBAC) has signed an agreement with the Public Investment Fund (PIF) to amend the terms of its existing loan of SR3.75 billion ($1 billion) which has been reduced to SR3.506 billion ($935 million) through previous repayments.
 
A major player in the region, MBAC is 74.9 per cent owned by Maaden and 25.1 per cent by US aluminium giant Alcoa Corporation.
 
MBAC has also signed a financing agreement with the following local and regional commercial banks: The National Commercial Bank, Al Rajhi Bank, Riyad Bank, Bank AlBilad, Arab National Bank, Alinma Bank, Banque Saudi Fransi, Samba Financial Group, Saudi British Bank, Arab Petroleum Investment Corporation (Apicorp), First Abu Dhabi Bank, The Saudi Investment Bank and Bank AlJazirah, for SR4.245 billion ($1.132 billion). 
 
The funding will refinance the existing debt provided by local and regional commercial banks and the Saudi Industrial Development Fund (SIDF), which was for a total of SR4.618 billion ($1.231 billion), said a statement from Maaden.
 
The periods of the original financing were as follow:
 
*PIF facility for 16 years, scheduled installments starting from June 30, 2017.
*Commercial banks facility for 16 years, scheduled installments starting from June 30, 2017.
*SIDF facility for 7.4 years, scheduled installments starting from June 30, 2017.
The period of the amendment agreement will be as follow:
 
Maaden said as per the amended deal, the PIF facility for 14 years will be repaid in 27 semi-annual scheduled installments starting from June 30, 2019, while the Murabaha facility for 10 years will be repaid in 19 semi-annual scheduled installments.
 
Also the Murabaha facility for 12.5 years will be repaid in 24 semi-annual scheduled installments and the Wakala facility in 24 semi-annual scheduled installments starting from June 30, 2019, said the statement from MBAC.
 
The new facilities are on more favourable terms reflecting MBAC's status as a successful operating company and have been provided without any corporate financial guarantees from sponsors, it added.-TradeArabia News Service



Tags: Mining | Alcoa | Saudi Maaden |

More Energy, Oil & Gas Stories

calendarCalendar of Events

Ads