Saudi Arabian Mining Co. — Capital/Financing Update 2011

Oct 16, 2011

SAUDI ARABIAN MINING COMPANY (MAADEN) ANNOUNCES THE SIGNATURE OF FINANCING AGREEMENTS WITH COMMERCIAL BANKS AND FINANCIAL INSTITUTIONS TO FUND THE SECOND PHASE OF ALUMINUM PROJECT

1211 · 16/10/2011 15:45:48 · Announcement #22880 · View on Saudi Exchange

SAUDI ARABIAN MINING COMPANY (MAADEN) ANNOUNCES THE SIGNATURE OF FINANCING AGREEMENTS WITH COMMERCIAL BANKS AND FINANCIAL INSTITUTIONS TO FUND THE SECOND PHASE OF ALUMINUM PROJECT

Further to the companys announcement on Tadawul on 1/8/1432 corresponding to 2/7/2011. Saudi Arabian Mining Company (Maaden) announces today that its subsidiary Maaden Bauxite and Alumina Company has signed today 18,/11/1432 corresponding to 16/10/2011 financing agreements for the second phase of the Aluminum Project. The agreements totaling SAR 3.718 billion (US$ 991.5 million) were signed with thirteen local and international banks and financial institution; the loans will be paid in 21 semiannual installments; the repayment will start on the date of 30/6/2017 and will be for the period of 16 years. Financing agreements for the remaining SAR 4.350 billion (US$1.160 billion) will be completed later with Public Investment Fund (PIF) and Saudi Industrial Development Fund (SIDF).

The total cost of second phase of the Aluminum Project is estimated to be SAR 13.445 billion (US$ 3.585 billion); 60% of the total cost of the second phase SAR 8.068 billion (US$2.151 billion) will be financed through: the Public Investment Fund SAR 3.750 billion (US$ 1 billion), commercial banks and financial institutions SAR 3.718 billion ($ 991.5 million). Further funding of SAR 600 million (US$160 million) by Saudi Industrial Development Fund (SIDF) is currently under evaluation.

The remaining portion of total cost SAR 5.377 billion (US$ 1.434 billion) will be financed by the project partners (Maaden and Alcoa) on a pro-rata basis.

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