Alcoa Partner Maaden Obtains $2.4 Billion Loan to Fund Expansion

Saudi Arabian Mining Co., (MAADEN) the Saudi Arabian company that’s building an alumina refinery in a joint venture with Alcoa Inc. (AA), obtained $2.4 billion in loans to finance projects, raising more money than initially sought.

The company, known as Maaden, raised 9 billion riyals from five-year Islamic loan after seeking 7 billion riyals, the Riyadh-based miner said in a statement on the Saudi stock exchange today. The deal was oversubscribed 2.5 times, it said.

The miner of gold, phosphate and other materials is raising cash to expand in Saudi Arabia, the world’s largest oil exporter. Earlier this month, Maaden awarded contracts valued at 977 million riyals to Fluor Corp. (FLR) and Bechtel Corp. to develop phosphate industries in the kingdom.

Maaden raised the loan from National Commercial Bank, Samba Financial Group (SAMBA), Banque Saudi Fransi (BSFR), Riyad Bank (RIBL), Saudi British Bank (SABB), Al Rajhi Bank (RJHI), Bank Al Jazira (BJAZ), Arab National Bank (ARNB), Bank Albilad (ALBI), Saudi Investment Bank (SIBC) and JPMorgan Chase & Co.

Maaden shares have gained 30 percent this year compared with a 7.1 percent increase for the benchmark Tadawul All Share Index. Three analysts have a buy recommendation on the stock, two rate it hold and three say sell, according to data compiled by Bloomberg.

To contact the reporter on this story: Glen Carey in Riyadh at gcarey8@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

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