Saudi Arabian Mining Co (Maaden), which has an aluminum joint venture with Alcoa, raised 9 billion riyals ($2.4 billion) through an Islamic loan facility to help fund its future projects, it said on Tuesday.
The murabaha-structured revolving credit facility has a life of five years and was increased from the 7 billion riyals initial target amount which the bank announced in June, Maaden said in a bourse statement.
A murabaha is a sharia-compliant cost-plus-profit arrangement.
In all, commitments from the banks covered the facility’s final amount by 2.5-times, the statement said.
Maaden runs Saudi Arabia’s first aluminum smelter, in a joint venture with U.S.-based Alcoa. The Saudi firm said late last month the plant would not reach full capacity on schedule due to power supply issues.
In March, Maaden outlined plans to add a new production line, with a capacity of 100,000 tons per year, at its aluminum joint venture to produce sheets used in the automotive and construction industries.
The subscribing banks for Islamic loan were National Commercial Bank, Samba Financial, Riyad Bank , Banque Saudi Fransi, Saudi British Bank (SABB), Al Rajhi, Bank Al Jazira, J.P. Morgan Chase, Arab National Bank, Bank Al Bilad, and Saudi Investment Bank.
Maaden’s share price has risen 30.6 percent year-to-date, outperforming the main Saudi index, which has gained 7.1 percent in 2012. ($1 = 3.7502 Saudi riyals)