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
- DHL Express boosts Mideast fleet
- DNV to re-certifiy Drydocks World services
- Amphibious boats make global debut in Dubai
- Qatar sets up mixed business incubator
- Non-oil sectors ‘biggest contributors to UAE economy’
- Alba educates customers on best practices
- Spinneys to set up distribution centre at Kizad
- Maritime courses draw more trainees
- Dow to showcase at Dubai coatings expo
- UAE aluminium sector backs Syria refugees
- Asry in big vessel repair milestone
- Flare, Jordan form parent company ‘Aereon’
- Drydocks delivers second MCV for US
- ASIS launches amphibious leisure boat
- Taskforce sought to develop Saudi downstream sector
- DP World launches $200m India project
- RAK 'exploring' ceramics unit stake sale
- Mideast carriers top global air freight growth
- DMCA launches maritime solution apps
- Saudi plans oil-to-chemicals plant at Yanbu
- Sabic gets four bids for JV with Mitsubishi Rayon
- Pentair, IDC launch industrial services JV
- Major maritime conference to be held in Dubai
- GPIC wins key IFA certification
- Gulf rules must aid e-commerce: Aramex
- Gulftainer expands 2013 ops by 50pc
- DMCA to take part in Dubai boat show
- Al Namal to launch eco-friendly chillers
- Abu Dhabi city ports to receive facelift
- Kuwait Styrene posts $180m net profit