Maaden repays SAR 3 bln debt for Wa'ad Al-Shamal phosphate project

Maaden headquarters

Saudi Arabian Mining Co. (Maaden) announced it made the largest debt repayment in its history, at a value of SAR 3 billion, which was carried out by its subsidiary, Maaden Wa’ad Al-Shamal Phosphate Co., ahead of schedule, Saudi Press Agency reported.

This comes as a strategic step aimed at reducing financing costs, and part of the company's strategy to reduce debts, Maaden said, noting that this debt represents 7% of its overall debts.

The early repayment comes in line with the capital allocation framework announced by Maaden recently, which reinforces its commitment to disciplined and sustainable management of capital, towards supporting its ambitious vision and growth plans.

Maaden also continues with supporting its debt profile, it stresses the use of its capital in a disciplined manner, which is the cornerstone of its long-term sustainable growth strategy.

Maaden Wa’ad Al-Shamal Phosphate Co. signed, in 2014, financing contracts with the Public Investment Fund (PIF) and a number of commercial banks and local and regional financial institutions, with a total value of SAR 18.9 billion ($5 billion), according to Argaam's data.

Maaden Phosphate project in King Abdullah project to develop Wa'ad Al-Shamal city is a joint venture, which is 60% owned by Maaden, 25% by Mosaic and 15% by SABIC.