Saudi Maaden seeks USD3b loan to refinance debt
(MENAFN) Saudi Mining Co. (Maaden) is currently holding talks with banks to fund a loan worth up to USD3 billion to refinance debt taken on to construct a phosphate complex for a joint venture.
The MPC facilities cost USD5.52 billion to build, for which the original funding was put in place in 2008 on a 70/30 split between debt and equity, with two Saudi government funds contributing debt worth USD1.1 billion.
The remaining USD2.76 billion came via loans from commercial banks and finance backed by Korean export credit agencies. Maaden has invited banks to submit proposals on refinancing this debt, according to banking sources.
The Gulf's largest miner operates Maaden Phosphate Company (MPC), which produces ammonia and the fertilizer diammonium phosphate (DAP), in a 70/30 ownership split with petrochemicals giant SABIC.
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