The mining firm says the deal aims to refinance an existing debt facility
Saudi Arabian Mining Co (Ma'aden) said its unit was in talks with local, regional and international banks for a loan of $3 billion to refinance existing debt facility, confirming a Reuters story published the previous day.
The company said it was borrowing through its unit Maaden Phosphate Company (MPC), which produces ammonia and the fertiliser diammonium phosphate, in a 70/30 ownership split with petrochemicals giant Saudi Basic Industries Corp.
"As a successful operating company MPC is now well positioned to take advantage of favorable debt market conditions to replace the debt facilities raised in 2008 to fund the construction of the company's plants," it said in a statement to the bourse.
On Monday, Reuters published details of the $3 billion loan the firm was seeking to borrow to refinance debt taken on to construct a phosphate complex for a joint venture.