Maaden issues SAR 3.5bn sukuk

Maaden issues SAR 3.5bn sukuk
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Mubasher: Saudi Arabian Mining Company (Ma’aden) announced that its subsidiary, Maaden Phosphate Company (MPC) has successfully completed the offering of its Shariah compliant sukuk for SAR 3.5 billion.

The issuance consists of 3,500 certificates with a nominal value of SAR 1 million each, according to the company’s statement to the Saudi Stock Exchange (Tadawul).

The proceeds from the issuance will be utilized for the purpose of replacing a portion of the existing debt of MPC and will not increase the amount of MPC debt, the statement noted.

The offering was a single class unsecured instrument denominated in Saudi Riyals privately offered to commercial banks and financial institutions.

The Sukuk has an expected return of 135 basis points over the Saudi Interbank Offered Rate (SIBOR) and a maturity of seven years payable in one lump sum.

It is worth noting that MPC is a limited liability company co-owned by Maaden (70 %) and Saudi Basic Industries Corporation (SABIC) (30%).