Saudi Arabian Mining Company “Ma’aden”, the leading mining company in the region, announced the successful completion of its issuance of US dollar-denominated sukuk, as part of its international sukuk program, in a strategic move aimed at strengthening its financial position and supporting its ambitious expansion plans.
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company revealed that the total value of the offering reached US$1 billion. A total of 5,000 sukuk were issued, with this number calculated based on the minimum nominal value and the total issuance size. The company detailed the financial aspects of the issuance, noting that the nominal value of each sukuk is US$200,000, with an annual return of 5.250%, and a maturity period of 10 years.
This successful offering comes at a crucial economic juncture for the Kingdom of Saudi Arabia, where the mining sector is the third pillar of national industry under Vision 2030, alongside oil, gas, and petrochemicals. Ma'aden plays a pivotal role in achieving the goals of this vision by developing the Kingdom's vast mineral resources, valued at trillions of dollars, including phosphate, gold, copper, and bauxite.
The strong demand for this international offering reflects the high level of confidence international investors have in the Saudi economy and in Ma'aden as a robust and financially sound investment entity. The success of the issuance in global markets also underscores the attractiveness of Islamic debt instruments (sukuk) as a safe and viable investment option amidst current global economic volatility, further enhancing the presence of Saudi companies in international capital markets.
Regarding regulatory aspects, the company stated that the sukuk may be redeemed under specific conditions outlined in the offering document. These sukuk are slated for listing on the London Stock Exchange's International Financial Market. Ma'aden indicated that the sukuk sale will be conducted in accordance with Regulation S and Rule 144A of the US Securities Act of 1933, as amended, thus opening the market to a broad base of qualified global investors.
