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Project given financing advice.

The second-phase financing of the $10.8 billion integrated aluminium complex and related infrastructure, sponsored by Saudi Arabian Mining Company (Maaden) and Alcoa Inc, has received advice from Clifford Chance and Al-Jadaan & Partners Law Firm, a statement said. The complex, when completed, will have the largest fully integrated aluminium facilities in the world with a refinery, smelter and food-grade can sheet rolling mill located at the Ras Al Khair industrial site (previously known as Ras Az Zawr) in north-eastern Saudi Arabia, fed by bauxite sourced from the Al Ba'itha mine. Phase 2 involved the financing of a bauxite mine to be developed at Al Ba'itha in Saudi Arabia and an associated alumina refinery, with the combined cost of development being $3.58 billion. The bauxite mine will be the first such mine in Saudi Arabia, and is set to extract up to 4.25 million tonnes of bauxite ore per annum. The refinery will have an initial capacity of 1.8 million tonnes of refined alumina per year. Maaden Bauxite and Alumina Company (MBAC), a joint venture between Maaden and Alcoa, is developing the mine and refinery. The total amount of the multi-sourced financing for the mine and refinery project will be $2.15 billion and comprises an Islamic ijara facility including separate riyal and US dollar tranches, an Islamic Wakala facility, a commercial facility, a facility to be provided by the Public Investment Fund of Saudi Arabia and a facility to be provided by the Saudi Industrial Development Fund. Clifford Chance acting through its offices in Frankfurt, Dubai and Abu Dhabi and Al-Jadaan & Partners Law Firm acted for the financing group made up of commercial banks and financial institutions led by a set of mandated lead arrangers which comprised Alinma Bank, Al-Rajhi Banking & Investment Corporation, Arab National Bank, Bank AlJazira, Banque Saudi Fransi, Emirates NBD, Export Development Canada, Riyad Bank, Samba Financial Group, Saudi Hollandi Bank, The National Commercial Bank, The Saudi British Bank and The Saudi Investment Bank. The National Commercial Bank and Banque Saudi Fransi acted as documentation banks. Documentation of Phase 1 was done in late 2010. Pursuant to the Phase I financing, the sponsors are developing the $5.01 billion aluminium smelter project and the $2.52 billion aluminium rolling mill project through Ma'aden. Aluminium Company and Ma'aden Rolling Company respectively. The aluminium smelter will be the first to be constructed in Saudi Arabia, while the rolling mill will be the first food-grade can sheet rolling mill to be constructed in the GCC region.

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Publication:Gulf Industry
Geographic Code:7SAUD
Date:Dec 1, 2011
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