HSBC to Arrange $1.8 Bln Maaden Loan -Banker

HSBC to Arrange $1.8 Bln Maaden Loan -Banker

Saudi Arabian Mining Co (Maaden) is seeking a 7 billion riyal ($1.86 billion) loan from local banks, a Saudi banker told Reuters on Wednesday.

April 19, 2012 9:38 by kippreport

Saudi Arabian Mining Co (Maaden) is seeking a 7 billion riyal ($1.86 billion) loan from local banks, a Saudi banker told Reuters on Wednesday.

Maaden said in March that it plans to add a new production line, with a capacity of 100,000 tonnes per year, at its aluminium joint venture with U.S. firm Alcoa to produce sheets used in the automotive and construction industries.

It said that financing for the project will be announced at a later date.

“It is a 7 billion riyal loan for five years,” the banker, who declined to be named, said, adding that the loan will be finalised by the third quarter of this year.

HSBC Saudi Arabia, an affiliate of HSBC, will be the lead arranger, he said.

A spokesman for Maaden could not immediately comment.

The aluminium complex is owned 74.9 percent by Maaden and 25.1 percent by Alcoa.

In February Maaden said it plans to invest 21 billion riyals in a phosphate project as part of a new industrial city in the country’s north.

“The focus has clearly moved onto more value-added services, rather than subscriber growth.”

This has spurred STC to aggressively price broadband bundle packages as it competes with Mobily, an affiliate of the United Arab Emirates’ Etisalat, and Zain Saudi , part-owned by Kuwait’s Zain.

STC has operations across the Muslim world from Turkey to Indonesia, but its home market continues to provide the bulk of revenue.

“Growing population, a strong economy driving demand for corporate telecoms services, and increased purchasing power have supported the telecoms sector,” added Hammoud. “Saudi is also behind in terms of broadband penetration, estimated at 50-55 percent. That compares with up to 70-80 percent in the UAE.”

Saudi Arabia’s economy is forecast to grow 4.5 percent in 2012, according to a Reuters poll in March.

($1 = 3.7505 Saudi riyals)

(Reporting by Matt Smith; Editing by Reed Stevenson)