Maaden raises $2.4bn via Islamic facility
Riyadh, December 18, 2012
Saudi Arabian Mining Co (Maaden), which has an aluminium joint venture with Alcoa, raised 9 billion riyals ($2.4 billion) through an Islamic loan facility to help fund its future projects, it said on Tuesday.
The murabaha-structured revolving credit facility has a life of five years and was increased from the 7 billion riyals initial target amount which the bank announced in June, Maaden said in a bourse statement.
A murabaha is a sharia-compliant cost-plus-profit arrangement.
In all, commitments from the banks covered the facility's final amount by 2.5-times, the statement said.
Maaden runs Saudi Arabia's first aluminium smelter, in a joint venture with US-based Alcoa. The Saudi firm said late last month the plant would not reach full capacity on schedule due to power supply issues.
In March, Maaden outlined plans to add a new production line, with a capacity of 100,000 tonnes per year, at its aluminium joint venture to produce sheets used in the automotive and construction industries.
The subscribing banks for Islamic loan were National Commercial Bank, Samba Financial, Riyad Bank , Banque Saudi Fransi, Saudi British Bank (SABB), Al Rajhi, Bank Al Jazira, J.P. Morgan Chase, Arab National Bank, Bank Al Bilad, and Saudi Investment Bank. - Reuters
More Industry, Logistics & Shipping Stories
- Gulf Extrusions unveils key techniques at Italy show
- Tata Steel rules out EU assets sale
- Egyptian firm Maridive inks $150m Islamic loan
- GPIC marks work safety milestone
- Sabic unveils green plastics for construction
- Sabic opens new facilities in Jubail
- Asry plans multimillion dollar floating dock
- TNT unveils new communication unit in Oman
- Hilco plans sale of seafood unit equipment
- Alessa unveils Qatar expansion plans