Saudi’s Maaden Says Secures $2 Billion Loan For Phosphate Plan

Saudi Arabia’s state-owned Public Investment Fund will provide $2 billion financing for a phosphate project planned by Saudi Arabian Mining Co (Maaden) , Saudi Basic Industries Corp (SABIC) and Mosaic, Maaden said on Thursday.

It did not specify which elements of the project, part of the kingdom’s overall strategy of diversifying away from oil and gas and building job-creating downstream industries, would be paid for by the fund.

The loan will be for 17 years and will be repaid in twice yearly instalments after a five-year grace period, Maaden said in a bourse statement without giving further details.

The Waad al-Shamal project, in the far north of Saudi Arabia, will involve total investment of around $9 billion for a phosphate mine, several major processing facilities, smaller downstream factories and a residential area.

In December Maaden said it had secured $4.2 billion financing commitments from banks. First production is expected in 2016.