Ma'aden prices $1.25 billion in Sukuk on LSE
Deal News | Feb 07, 2025 | Zawya
The Saudi Arabian Mining Company (Ma'aden) has successfully priced its Reg S US dollar-denominated senior unsecured trust certificates, raising a total of $1.25 billion. The issuance is split into two tranches: a five-year structure priced at $750 million offering a profit rate of 5.25%, and a ten-year tranche priced at $500 million with a profit rate of 5.5%. This Sukuk issuance, which will be listed on the London Stock Exchange's International Securities Market, had initial price thoughts set at Treasuries plus 140 basis points for the five-year tranche and Treasuries plus 155 basis points for the ten-year. Fitch and Moody's have rated the certificates BBB+ and Baa1, respectively, with stable outlooks. Ma'aden, a state-backed mining corporation, has engaged several major financial institutions as joint lead managers, including Citigroup Global Markets Limited and HSBC Bank serving as joint global coordinators.
Sectors
- Mining
- Finance
- Capital Markets
Geography
- Saudi Arabia – The main focus is Ma'aden, a Saudi-based mining company.
- United Kingdom – The Sukuk is listed on the London Stock Exchange's International Securities Market.
Industry
- Mining – The article revolves around Ma'aden, a state-backed mining company in Saudi Arabia.
- Finance – The issuance of dollar-denominated sukuk and its listing on the stock exchange involve financial transactions and investments.
- Capital Markets – The process of raising $1.25 billion through sukuk falls within the activities of capital markets.
Financials
- $750 million – The size of the five-year structure of the sukuk issuance.
- $500 million – The size of the ten-year structure of the sukuk issuance.
- 5.25% – Profit rate for the five-year trust certificates.
- 5.5% – Profit rate for the ten-year trust certificates.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Saudi Arabian Mining Company (Ma'aden) | Issuer | Company | A state-backed mining company from Saudi Arabia issuing the sukuk. |
| Citigroup Global Markets Limited | Joint Global Coordinator | Company | One of the financial institutions coordinating the sukuk issuance. |
| HSBC Bank | Joint Global Coordinator | Company | One of the financial institutions coordinating the sukuk issuance. |
| Fitch | Rating Agency | Company | Provided a BBB+ rating with a stable outlook for the sukuk. |
| Moody's | Rating Agency | Company | Provided a Baa1 rating with a stable outlook for the sukuk. |
| Al Rajhi Capital, BNP Paribas, GIB Capital, JP Morgan Securities, Natixis, Saudi Fransi Capital, SNB Capital, Standard Chartered | Joint Lead Managers | Company | Participating financial institutions assisting in the issuance of the sukuk. |