Ma'aden signs a ground-breaking SR9bn shariah compliant Syndicated Revolving Credit Facility
- Saudi Arabia: Tuesday, December 18 - 2012 at 14:29
- PRESS RELEASE
Saudi Arabian Mining Company ("Ma'aden"), Saudi Arabia's leading mining company, signed a landmark SR9bn Syndicated Revolving Facility in Riyadh.
The company was originally exploring a facility size of up to SR7bn, but following an overwhelming response by the bank market, the management decided to upsize the facility to SR9bn to accommodate the demand from the banks and also to further increase Ma'aden's financing flexibility. A syndicate of 11 local and international banks participated in the revolving credit facility, generating initial commitments exceeding SR17bn (an oversubscription of almost 2.5x as compared to the originally targeted facility size). The unprecedented response from leading financial institutions underscores the fundamental strength of Ma'aden and highlights the market's confidence in the company's strategy as it embarks on supporting the diversification of the Kingdom's economy.
"We are very pleased with the outcome of this transaction, particularly that the company was able to achieve very competitive terms despite a busy financing calendar. It is testament to the bank market's confidence in the company and its ability to deliver on its growth strategy. Going forward, Ma'aden will be looking to further diversify its financing sources to support our growth plans in the medium to long term and to optimize our sources and costs of funding," Khalid Al-Mudaifer, President and CEO of Ma'aden commented.
"Today marks an important step for Ma'aden in the execution of our funding strategy. We are particularly proud of the level of support that we have received from the financial community. This support provides us with the flexibility we need to move forward on a number of investment plans across our diverse portfolio," said Khalid Al Rowais, Vice President of Finance for Ma'aden.
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