Saudi Arabian Mining Co. (Maaden) has asked banks for proposals for a loan that would be used to refinance a part of the Tadawul-listed mining giant’s $2.88 billion existing debt, Reuters reported, citing unnamed sources familiar with the matter.
The request for proposals was sent last week and the banks have until the end of September to respond, the sources said.
The state-controlled miner, the largest in the Gulf region, is raising funds for Maaden Aluminium, an integrated aluminium facility, the news agency said.
France’s BNP Paribas and Saudi Arabia’s National Commercial Bank are managing the fundraising, which could be completed by the end of the year, one of the sources said.
The loan that Maaden is currently seeking would refinance Maaden Aluminium’s entire commercial debt, a source said. The loan would be denominated in both US dollars and Saudi riyals, and have tenors of seven and 10 years.
The company has approached local and international lenders for the loan, which is expected to be closer to a corporate finance facility than to the original project financing arrangement, the source added.
Maaden Aluminium, which is a joint venture between Maaden and US-based Alcoa, is expected to eventually become the largest aluminium complex in the world, employing more than 3,000 people.
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