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Saudi's Ma'aden signs two financing agreements worth $506m

A sulphuric acid plant, an energy plant, and a diammonium phosphate plant will be built with SIDF

Saudi's Ma'aden and Saudi Industrial Development Fund (SDIF) have signed two financing deals worth $506m for three industrial projects in the kingdom [representational image].
Saudi's Ma'aden and Saudi Industrial Development Fund (SDIF) have signed two financing deals worth $506m for three industrial projects in the kingdom [representational image].

Saudi Arabian Mining Company (Ma'aden) and the Saudi Industrial Development Fund (SIDF) have inked two financing deals worth $506m (SAR1.9bn) to build various major projects in Waad Al Shamal city and Ras Al-Khair, a regulatory filing has revealed.

In a statement on Saudi Stock Exchange, Tadawul, the deals between Ma’aden subsidiary Maaden Waad Al Shamal Phosphate Company (MWSPC) and SIDF include a loan of facility of $266.5m (SAR1bn) to construct MWSPC’s sulphuric acid plant, and an energy plant in Waad Al Shamal.

The loan will be repaid in 24 semi-annual installments from 7 June, 2020.

READ: Saudi Arabia reveals construction progress updates of $500bn Neom

Another loan worth $239.9m (SAR900m) to build MWSPC’s diammonium phosphate (DAP) plant in Ras Al-Khair on Saudi's east coast, as outlined in the bourse filing, will be repaid in 20 semi-annual installments from the same date, over a ten-year period.

Ma’aden said the plant assets will be mortgaged by SDIF.

Ma’aden, The Mosaic Company, and Saudi Basic Industries Corporation (Sabic) respectively own 60%, 25%, and 15% of the joint venture developing the Waad Al Shamal Phosphate project.

Waad Al-Shamal was officially inaugurated in Turaif in Saudi’s Northern Borders Province by the kingdom’s HH King Salman bin Abdulaziz Al Saud on 22 November at the conclusion of a multi-day tour in the area.

READ: Saudi King, PIF unveil multibillion-dollar schemes in Vision 2030 push

Developed under the supervision of the Saudi Ministry of Energy, Industry, and Mineral Resources, the new city aims to boost the gross domestic product of Saudi Arabia by $6.4bn (SAR24bn) and non-oil growth by roughly 3%, as reported by local media the end of last week.

The news comes as the king continues his county-wide tour which has seen projects worth several billion dollars announced, with more than 200 in Al Jouf alone, as reported by Construction Week earlier this week.

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Construction Week - Issue 752
Oct 30, 2019