Ma’aden’s Landmark Sukuk Offering

The Saudi Arabian Mining Company (Ma’aden), the largest mining and metals company in the Middle East and one of the fastest-growing globally, has made a press release where it has successfully priced its first international senior unsecured sukuk offering, raising a total of US$ 1.25 billion. This marks one of Saudi Arabia’s most successful debut sukuk offerings to date

Offering details

• 5-Year Tranche: US$ 750 million at a fixed profit rate of 5.25%, maturing on 13 February 2030.
• 10-Year Tranche: US$ 500 million at a fixed profit rate of 5.50%, maturing on 13 February 2035.

Interest

The offering witnessed phenomenal interest, being 9.2 times oversubscribed with orders exceeding US$ 11.5 billion. This overwhelming demand underscores global confidence in Ma’aden’s growth and its pivotal role in driving the mining sector as the third pillar of Saudi Arabia’s economy, aligned with Vision 2030.

Proceeds from the offering will support Ma’aden’s general corporate purposes and accelerate its growth strategy, particularly in securing minerals essential for the energy transition and sustainable development.

Third pillar of economy

Bob Wilt Ma’aden CEO has added has stated: “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.

Louis Irvine Ma’aden CFO has added: “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”

The sukuk will be listed on the London Stock Exchange’s International Securities Market, with settlement expected on 13 February 2025, subject to customary conditions.