JEDDAH, Saudi Arabia (Reuters) - Saudi Arabian Mining Company (MAADEN) 1211.SE has received bank commitments for its 7 billion riyal ($1.87 billion) Murabaha revolver loan with a tenure of five years, the firm said in a statement to the bourse on Saturday.
“The deal was oversubscribed 2.5 times,” it said.
The subscribing banks are National Commercial Bank, Samba Financial Group 1090.SE, Riyad Bank (1010.SE), Banque Saudi Fransi 1050.SE, Saudi British Bank (SABB) (1060.SE), Al Rajhi Bank 1120.SE, Bank Al Jazeera, J.P. Morgan VSITX.O, Arab National Bank, Bank Al Bilad, and Saudi Investment Bank.
In April Maaden said it was in talks with a number of banks for a loan of up to 7 billion riyals to finance the company’s future investments.
Maaden said in March it plans to add a new production line, with a capacity of 100,000 tonnes per year, at its aluminum joint venture with U.S. firm Alcoa (AA.N) to produce sheets used in automotive and construction industries.
It said that financing for the project will be announced at a later date.
In February Maaden said it plans to invest 21 billion riyals in a phosphate project as part of a new industrial city in the country’s north.
Reporting by Asma Alsharif