Subsidiary of Saudi’s Ma’aden amends loan terms

Saudi Arabian Mining Company (Ma’aden) said its subsidiary Ma’aden Bauxite and Alumina Company (MBAC) refinanced loans totalling SAR7.75bn ($2.1bn) on improved terms.

State-controlled Ma’aden said MBAC had agreed with the Public Investment Fund (PIF) to amend the terms of an existing SAR3.75bn loan provided by the kingdom’s sovereign wealth fund.

Under the new arrangement, the loan, which has been reduced to SAR3.51bn through repayments, will have a maturity of 14 years, it said.

MBAC, which is 74.9 per cent owned by Ma’aden and 25.1 per cent owned by Alcoa, was set up in 2009 and is one of three ventures owned jointly by the companies through which Ma’aden carries out its aluminium operations.

The announcement confirms a March 22 Reuters report, citing banking sources, that Ma’aden was seeking to refinance bank debt raised for MBAC. PIF holds a 65.4 per cent stake in Ma’aden, Ma’aden said in a statement last month.

Ma’aden said MBAC had also agreed a further SAR4.25bn in financing from 13 local and regional banks to refinance existing debt provided by banks and the Saudi Industrial Development Fund which totalled SAR4.62bn.

Read: Saudi Ma’aden rebounds to 2017 net profit

The new facilities were on more favourable terms and had been provided without any corporate financial guarantees from sponsors, Ma’aden said.