Maaden and Alcoa signed financing agreements for the second phase of the US$10.8 billion Maaden Bauxite and Alumina Company joint venture.
Maaden Bauxite and Alumina Company is owned 74.9 per cent by Maaden and 25.1 per cent by Alcoa and consists of a bauxite mine and an alumina refinery with an approximate cost of US$3.59 billion.
Sixty per cent of the total cost of the second phase (US$2.15 billion) is financed through the Public Investment Fund, Saudi Industrial Development Fund, financial institutions and commercial banks while the balance (US$1.43 billion) will be financed through the project partners.
Local and international Banks
The agreements consisting of conventional and Islamic allocations totaling US$991.5 million were signed with 13 local and international banks including National Commercial Bank, Riyad Bank, Saudi French Bank, Al-Rajhi Bank, Samba Financial Group, Alinma Bank, Arab National Bank, Saudi British Bank (SABB), Bank AlJazira, Saudi Hollandi Bank, Saudi Investment Bank, Emirates Bank and Export Development Canada.
Significant progress
"The agreement represent significant progress in the development of Maaden as a major new industrial presence in Saudi Arabia, creating jobs, regional development and providing the basis for the establishment of new downstream industries in the Kingdom," said Maaden President & CEO Khalid Al-Mudaifer.
"We are exceptionally pleased with the progress of the project with both phases now under construction and financing completed," added Ken Wisnoski, Alcoa vice president and president Alcoa Global Primary Products Growth.
