Saudi’s Ma’aden raises $1.25 billion through US dollar trust certificates

BY THE ARAB TODAY Feb 10, 2025

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Saudi’s Ma’aden raises $1.25 billion through US dollar trust certificates

Ma’aden, the Saudi Arabian Mining Company, has completed its $1.25 billion sale of US dollar trust certificates, according to a stock market filing on Sunday.

Offering Details

The offering was open to eligible investors in Saudi Arabia and other countries. It was divided into two parts:

A $750 million five-year portion with a 5.25% return
A $500 million ten-year portion with a 5.5% return

According to a filing on the Saudi Exchange, the five-year portion includes 3,750 trust certificates, while the ten-year portion has 2,500 trust certificates, each valued at $200,000.

Ma’aden said these trust certificates will be listed on the London Stock Exchange’s International Securities Market. The deal will be finalized on February 13. Ma’aden first announced this plan on February 4 and began offering the certificates on February 6.

Several major financial institutions, including Citigroup, HSBC, Al Rajhi Capital, BNP PARIBAS, JP Morgan, and Standard Chartered, helped manage the offering.

Recent Deals

In January, Ma’aden signed agreements worth $922 million (SAR 3.5 billion) with China National Chemical Engineering Company, Sinopec Nanjing Engineering & Construction, and Tekfen Construction. This is for the development of its third phosphate fertilizer project.

The total cost of the project is expected to be $6.4 billion (SAR 24 billion), and it will be built in phases. Once completed, it will increase production capacity by three million tons per year.

Earlier in January, Ma’aden also announced plans to open its first office in São Paulo, Brazil. This aligns with a $1.3 billion investment in geological mapping in Brazil, as reported by media sources quoting Brazilian Mining Minister Alexandre Silveira.