Maaden subsidiary signs 2 agreements to reschedule, refinance debts

Saudi Arabian Mining Company (Maaden) announced in a bourse statement today that its subsidiary, Ma’aden Wa’ad Al Shamal Phosphate Co. (MWSPC), signed two agreements on June 20 to reschedule and refinance its debts.

The first agreement includes rescheduling the company’s debts owed to the Public Investment Fund (PIF) and transferring it to the Public Pension Agency.

Meanwhile, the second entails refinancing debts owed to a syndicate of commercial banks and other financial institutions by using the proceeds from new debts provided by the group of commercial banks.

The total value of existing financing amounted to SAR 15.3 billion ($4.1 billion), while the value of refinancing stood at SAR 8.6 billion ($2.3 billion), in addition to the rescheduled amount of SAR 6.7 billion ($1.8 billion).

The company indicated that the financiers are the Public Pension Agency, Alinma Bank, Bank AlJazira, Bank Albilad, Al Rajhi Banking & Investment Corp., The National Commercial Bank, Samba Financial Group, Banque Saudi Fransi, The Saudi British Bank (SABB), and Riyad Bank.

The restructuring is aimed at providing more favorable terms reflecting on MWSPC’s cash generation profile, the statement added.

The previous financing period was a 16.5-year facility to be paid in semi-annual installments from Dec. 31, 2018, while the new period is as follows:

1) 15-year Murabaha facility to be repaid in semi-annual scheduled installments starting from June 30, 2022.

2) 15-year Wakala facility to be repaid in semi-annual scheduled installments starting from June 30, 2022.

3) 15-year conventional facility to be repaid in semi-annual scheduled installments starting from June 30, 2022.

Maaden chairman Yasir Al Rumayyan is also the governor of PIF, whereas board members Abdullah Al-Issa chairs Riyad Bank board and Lubna Al-Olayan chairs SABB bank board, the statement noted, adding that the deal was completed within ordinary course of business without any preferential terms.

According to data compiled by Argaam, MWSPC signed, in 2014, financing contracts worth SAR 18.9 billion ($5 billion) with PIF and a syndicate of commercial banks and other financial institutions.

MWSPC is 60% owned by Ma’aden, 25 % owned by Mosaic Company & 15% owned by Saudi Basic Industries Corp (SABIC).