Maaden Bauxite and Alumina Company signs amended financing deal with Public Investment Fund

Saudi Arabian Mining Company (Ma’aden) reported that its subsidiary Maaden Bauxite and Alumina Company (MBAC) has signed an agreement with the Public Investment Fund (PIF) to amend the terms of its existing loan of SR3.75 billion ($1 billion) which has been reduced to SR3.506 billion ($935 million) through previous repayments. 

A major player in the region, MBAC is 74.9 per cent owned by Maaden and 25.1 per cent by US aluminium giant Alcoa Corporation. MBAC’s bauxite mine produced 3.7 million tonnes of bauxite, and the refinery produced 1.48 million tonnes of alumina from which the smelter produced 762Kmt of aluminium. MBAC has also signed a financing agreement with a number of local and regional commercial banks for SR4.245 billion ($1.132 billion).

The funding will refinance the existing debt provided by local and regional commercial banks and the Saudi Industrial Development Fund (SIDF), which was for a total of SR4.618 billion ($1.231 billion), said a statement from Maaden.

Maaden said as per the amended deal, the PIF facility for 14 years will be repaid in 27 semi-annual scheduled instalments starting from June 30, 2019, while the Murabaha facility for 10 years will be repaid in 19 semi-annual scheduled instalments.

Also the Murabaha facility for 12.5 years will be repaid in 24 semi-annual scheduled instalments and the Wakala facility in 24 semi-annual scheduled instalments starting from June 30, 2019, said the statement from MBAC.

The new facilities are on more favourable terms reflecting MBAC's status as a successful operating company.