Ma'aden unit to borrow $1bn from state fund
DUBAI, January 8, 2016
A subsidiary of Saudi Arabian Mining Co (Ma'aden) will borrow SR4 billion ($1.07 billion) in construction loans from a state-backed agency, the parent firm said on Thursday.
Ma'aden, the Gulf's largest miner, said in a bourse statement that the Saudi Industrial Development Fund (SIDF) has approved providing the loan facilities to Ma'aden Waad Al Shamal Phosphate Company (MWSPC).
A SR900 million facility will fund building an ammonia plant, while a separate loan for the same amount will finance construction of a diammonium phosphate plant. Both loans will be repaid in 14 semi-annual installments over seven years, with the two plants to be built in Ras Al-Khair.
Two further loans - of SR1 billion and SR1.2 billion respectively - will fund building plants to manufacture sulphuric acid, phosphoric acid and phosphate concentrate in Waad Al Shamal. These loans are for eight years and will be repaid in 16 semi-annual installments.
Ma'aden owns 60 per cent of MWSPC, The Mosaic Company 25 per cent and Saudi Basic Industries Corp (Sabic) 15 per cent. These shareholders will provide loan guarantees in proportion to their stakes in MWSPC.
The Saudi Industrial Development Fund is an agency affiliated with the Ministry of Finance, providing medium and long-term, soft loans for private industrial projects to help develop the kingdom's industrial sector, the ministry's website states. - Reuters
