RIYADH: ARAB NEWS
Published — Wednesday 19 December 2012
Last update 19 December 2012 1:23 am
The Saudi Arabian Mining Company (Maaden) has signed a SR 9 billion murabaha Islamic loan deal for a period of five years with a number of banks, according to an announcement posted on Tadawul.
The company decided to increase the loan value of SR 7 billion to SR 9 billion to have more financial flexibility to fund its future projects and meet other financial requirements, the announcement said.
The deal, secured by 11 banks, was oversubscribed 2.5 times, which demonstrated the banks’ trust in Maaden’s credit worthiness, the report said.
The subscribing banks are National Commercial Bank, Samba Financial Group, Banque Saudi Fransi, Riyad Bank, Saudi British Bank (SABB), Al-Rajhi Bank, Bank Al Jazeera, J.P. Morgan Chase & Co., Arab National Bank, Bank Al Bilad, and Saudi Investment Bank.
Last June, Maaden received a murabaha-revolving credit facility worth SR 7 billion with tenure of five years from a number of local banks.