Feb 09, 2025
Saudi Arabian Mining Company (Ma’aden), the largest multi-commodity mining and metals company in the Middle East and one of the fastest growing in the world, has priced its first international senior unsecured sukuk offering with an aggregate face amount of US$ 1.25 billion (the “Offering”). The Offering has become one of the most successful debut international sukuk offering in Saudi Arabia to date.
The Offering comprises two tranches of sukuk. The principal amount, tenor and profit rate, for each tranche of sukuk are:
• US$ 750 million in 5-year sukuk priced at a fixed profit rate of 5.25% maturing on 13 February 2030
• US$ 500 million in 10-year sukuk priced at a fixed profit rate of 5.50% maturing on 13 February 2035
The Offering was more than 9.2 times oversubscribed, with orders exceeding US$ 11.5 billion. The strong investor demand underlines Ma’aden’s investment case and recognizes its role as a key contributor to the development of the mining sector as the third pillar of the Saudi economy, in line with Vision 2030.
Issued by Ma’aden Sukuk Limited, the sukuk are being offered and sold pursuant to Rule 144A and Regulation S of the U.S. Securities Act of 1933, as amended.
The use of proceeds from the Offering is intended to be for general corporate purposes.
Bob Wilt, CEO, Ma’aden, said: “The significant success of this inaugural international sukuk offering demonstrates the confidence and interest that investors have in Ma’aden’s growth. Such strong international investor demand, some of the highest seen in Saudi Arabia, is testament to global confidence in our strategic direction and the integral role we play in unlocking Saudi Arabia’s $2.5 trillion of untapped mineral potential.
“As we continue to deliver on our ambitious growth strategy, this funding will accelerate our efforts to secure essential minerals that drive the energy transition and long-term development. We remain committed to building a globally competitive mining sector as the third pillar of Saudi Arabia’s economy.”
Louis Irvine, CFO, Ma’aden, said: “This successful sukuk issuance reflects the strength of our business, our disciplined financial strategy, and the confidence global investors have in Ma’aden’s future. We are particularly pleased to welcome new investors whose support will be instrumental as we continue to build mining as the third pillar of the Saudi economy, a key objective of the Kingdom’s Vision 2030. The funds raised will enable us to execute our expansion plans across all our divisions efficiently, while maintaining a robust balance sheet as we move forward.”
Application will be made for the sukuk to be admitted to trading on the London Stock Exchange's International Securities Market. Settlement is expected on 13 February 2025, subject to customary closing conditions.
Ma’aden is rated “Baa1” (stable outlook) by Moody’s and “BBB+” (stable outlook) by Fitch. The sukuk are expected to be rated on par with Ma’aden’s ratings.
Citi and HSBC acted as Joint Global Coordinators, Joint Active Bookrunners and Joint Lead Managers together with Al Rajhi Capital, J.P. Morgan and SNB Capital as Joint Active Bookrunners and Joint Lead Managers. BNP PARIBAS, BSF Capital, GIB Capital, Natixis and Standard Chartered Bank acted as Joint Passive Bookrunners and Joint Lead Managers. HSBC also acted as Ratings Advisor.