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Islamic finance or islamic investment. Image used for illustrative purpose. Getty Images
The Saudi Arabian Mining Company (Ma’aden) has priced its Reg S US dollar-denominated senior unsecured trust certificates.
The size of the five-year structure has been set at $750 million, with the 10-year at $500 million.
The profit rate for the trust certificates, which will be listed on London Stock Exchange’s International Securities Market, is 5.25% for the five-year and 5.5% for the 10-year.
Earlier, the initial price thoughts (IPTs) of Treasuries plus 140bp area were set for a five-year and Treasuries plus 155bp area for the 10-year part.
The obliger rating is BBB+ (outlook stable) by Fitch and Baa1 (outlook stable) by Moody’s, with the expected issue rating to be BBB+ by Fitch and Baa1 by Moody’s.
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. Citi and HSBC are joint global coordinators.
(Writing by Bindu Rai, editing by Imogen Lillywhite)
