JEDDAH: Saudi Arabian Mining Co (Maaden) is in talks with a number of banks for a loan of up to 7 billion riyals ($1.86 billion) to finance the company's future investments, the firm said in a bourse statement on Saturday.
"Maaden is in talks with a number of banks as it intends to receive a mid-term Murabaha loan for an amount that does not exceed seven billion riyals, in order to finance the company's future investments," it said.
On Wednesday a banker told Reuters that Maaden was seeking a 7 billion riyal loan from local banks, and that HSBC Saudi Arabia, an affiliate of HSBC, would be the lead arranger.
Maaden said in March it plans to add a new production line, with a capacity of 100,000 tonnes per year, at its aluminium joint venture with US 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.
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.
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