Saudi Arabian Mining Company (Ma'aden), the region's mining giant, announced its intention to proceed with issuing US dollar-denominated sukuk, a strategic move under its international sukuk issuance program, which was officially established on February 4, 2025. This announcement reflects the company's focus on diversifying its funding sources and supporting its ambitious expansion plans.
Details of the offering and official approvals
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company explained that this move is based on a series of senior management decisions, beginning with a Board of Directors resolution issued on 17 Jumada al-Thani 1446 AH (December 18, 2024), followed by a resolution from the Extraordinary General Assembly held on 4 Sha'ban 1446 AH (February 3, 2025). These steps culminated in the final approval of the issuance by a Board of Directors resolution dated 24 Jumada al-Thani 1447 AH (December 15, 2025).
Ma’aden indicated that the offering will target qualified investors both inside and outside the Kingdom of Saudi Arabia, thus opening the door to diverse investment flows.
List of banks and offering managers
To ensure the success of this international offering, Ma'aden appointed a strong banking consortium comprising reputable local and international financial institutions to manage the offering. The list included:
- Al Bilad Investment Company
- Al Jazeera Financial Markets Company
- Arab Banking Corporation (B.S.C.)
- Bank of China Limited (Hong Kong Branch)
- BNP Paribas
- City Group Global Markets Limited
- Goldman Sachs International
- HSBC Bank (plc)
- J.P. Morgan Securities (plc)
- Kuwait Finance House Capital Investment Company
- Merrill Lynch International
- Mizuho International (plc)
- Natixis
- Al Ahli Financial Company
Economic context and the importance of the mining sector
This announcement is particularly significant given Ma'aden's pivotal role in Saudi Arabia's Vision 2030, as the mining sector is the third pillar of Saudi industry, alongside oil and petrochemicals. Through its leading companies like Ma'aden, the Kingdom aims to develop its vast untapped mineral resources, valued at trillions of riyals, including gold, phosphate, and bauxite.
Turning to international debt markets by issuing dollar-denominated bonds is a common step for large companies seeking to finance huge capital projects without putting pressure on local liquidity, in addition to benefiting from a broader global investor base, which enhances the international presence of Saudi companies in global financial markets.
Offering objectives and future expectations
According to the statement, the primary objective of this offering is to finance "general corporate purposes," a financial term often referring to working capital, repayment of existing debt, or investment in new expansion projects. The company confirmed that the offering's size and final terms will be determined based on market conditions at the time of issuance, emphasizing that the process is subject to regulatory approvals and will be conducted in accordance with applicable laws and regulations.
