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The Saudi Arabian Mining Company (Ma’aden) has started marketing its US dollar-denominated trust certificates at initial price thoughts (IPTs) of Treasuries plus 140bp area for a five-year and Treasuries plus 155bp area for a 10-year part, according to IFR.
The offering commenced on February 6 and will close on February 7 and is open to eligible investors in the kingdom and internationally, through a special purpose vehicle.
The amount and terms of the offer has yet to be determined and is subject to the market conditions.
The state-backed mining company has mandated Citigroup Global Markets Limited, HSBC Bank, Al Rajhi Capital, BNP Paribas, GIB Capital, JP Morgan Securities, Natixis, Saudi Fransi Capital, SNB Capital and Standard Chartered as joint lead managers.
The trust certificates will be listed on the London Stock Exchange’s International Securities Market and may be sold in reliance on Regulation S and Rule 144A under the US Securities Act of 1933.
Shareholders authorised the board of directors on February 3 to offer debt instruments of all types, including without limitation, sukuk and bonds.
Ma’aden recently shared plans to invest more than $10 billion over the next few years to support the company’s growth. Last month, the mining giant and Saudi Aramco signed a head of terms agreement to set up a minerals exploration and mining joint venture (JV) focusing on energy transition minerals, including lithium.
(Writing by Bindu Rai, editing by Seban Scaria)
