Riyadh-Mubasher: Saudi Arabian Mining Co. (Ma'aden) said its subsidiary Ma'aden Waad Al Shamal Phosphate Co. (MWSPC) on Wednesday obtained the approval of Saudi Industrial Development Fund (SIDF) for four long-term loans at a total value of SAR 4.0 billion.
The first loan worth SAR 900 million is to finance the construction of MWSPC's ammonia plant in Ras Al-Khair. It will be repaid in 14 semi-annual installments over seven years, starting 22 December 2018.
The second SAR 900 million loan will be used to finance the construction of a diammonium phosphate plant in Ras Al-Khair. It will be repaid in 14 semi-annual installments over seven years, starting from the same date.
The third loan valued at SAR 1 billion will go for the establishment of a sulphuric acid plant and a power plant in Waad Al Shamal. The loan will be repaid in 16 semi-annual installments over eight years, starting 22 December 2018.
The fourth loan facility of SAR 1.2 billion will be used to build a phosphoric acid plant and a phosphate concentrate plant in Waad Al Shamal. The loan will also be repaid in 16 semi-annual installments over eight years, starting 22 December 2018.
MWSPC will provide a mortgage for SIDF to secure the loans. In addition, shareholders of MWSPC (Maaden, SABIC and Mosaic) will provide guarantees in for SIDF in proportion to their shareholding in MWSPC.
The four loans are subject to finalising binding loan agreements. The loans will complete the debt financing of MWSPC's phosphate project located in Waad Al Shamal and Ras Al-Khair, following the loans provided by financial institutions and the Public Investment Fund in 2014.
Saudi Arabian Mining Company (Maaden), The Mosaic Company and Saudi Basic Industries Corporation (SABIC) own 60%, 25% and 15% respectively of the joint venture developing the Waad Al Shamal Phosphate project respectively.
