The Saudi Arabian Mining Company (Ma'aden), announced that its affiliate Ma'aden Wa'ad Al-Shamal Phosphate Company (MWSPC), has signed financing facilities for long term project finance loans with a consortium of 20 financial institutions for a total amount of SR18.9 Billion (USD 5.0 Billion). MWSPC is a joint venture company formed by Ma'aden to develop the project with The Mosaic Company and the Saudi Basic Industries Corporation (SABIC). Ma'aden, Mosaic and SABIC own 60%, 25% and 15% of the project respectively. The financial institutions include the Public Investment Fund, financial institutions from both inside and outside of the Kingdom of Saudi Arabia as well as the two Korean export credit agencies who have participated in the financing in support of Korean contractors participating in the construction of the project. Funding has also been obtained from the Islamic Development Bank. The financing facilities will be utilized to fund the development of MWSPC's phosphate project which is being constructed at sites in Wa'ad Al Shamal and the existing Ras Al-Khair Industrial City. The new complex will create significant value to Ma'aden shareholders. As one of the largest and integrated phosphate fertilizer facilities in the world, it will double Ma'aden's cost effective phosphate production and improve Ma'aden's access to key global markets. The estimated cost of the project is approximately SR28 billion (USD7.5 billion), and production at the new facility is expected to commence in late 2016. Khalid Al-Rowais, Ma'aden Vice President for Finance, said "these financing facilities represent another milestone in the growth of Ma'aden and take the total fund raising by Ma'aden to almost SR75 Billion (USD 20Billion) since 2008. Commitments received from financial institutions were considerably in excess of the funds required, which is a testament both to the quality of the project itself and to the successful track record that Ma'aden has established in the financing market." The financing signed today includes a SR7.5 Billion (USD2 Billion) financing facility provided by the Public Investment Fund, SR7 Billion (USD1.9 Billion) of financing facilities provided by Al Rajhi Banking & Investment Corporation, Alinma Bank, Arab Petroleum Investment Corporation (APICORP), Banque Saudi Fransi, BNP Paribas, Export Development Canada, Islamic Development Bank, Riyad Bank, Samba Financial Group, Sumitomo Mitsui Banking Corporation, The National Commercial Bank, The Saudi British Bank and the Saudi Investment Bank. A further SR2.3 Billion (USD600 Million) loan facility was signed by The Export-Import Bank of Korea (KEXIM). In addition, KEXIM and Korea Trade Insurance Corporation (K-sure) provided loan insurance and guarantee facilities of SR2.2 Billion (USD575 Million) in respect of loan facilities being provided by HSBC Bank Middle East Limited, KfW IPEX-Bank GmbH, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, and the Bank of Tokyo Mitsubishi UFJ, Ltd.
