DUBAI - Saudi Arabian Mining Co's (Ma'aden) phosphate subsidiary is rescheduling and refinancing about $4.1 billion of debt to give it more flexibility to pursue growth and development projects, the company said on Sunday.

The subsidiary, Ma'aden Wa'ad Al Shamal Phosphate Company, will reschedule 6.7 billion riyals ($1.8 billion) owed to Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), and transfer the debt to the Public Pension Agency.

It will refinance 8.6 billion riyals owed to a syndicate of banks and other financial institutions by using new debt from a syndicate of commercial banks, Ma'aden said in a bourse filing.

The creditors are Alinma Bank, Bank AlJazira, Bank Albilad, Al Rajhi Banking & Investment Corporation, National Commercial Bank, Samba Financial Group, Banque Saudi Fransi, Saudi British Bank and Riyad Bank, Ma'aden said.

"The new financing facilities provide attractive and flexible corporate loan terms and conditions, in place of the more restrictive project financing terms and conditions originally put in place," Ma'aden said.

The new "covenant-lite" terms are a step towards allowing Ma'aden to pursue new growth and development projects, it said.

Before the deal, the debt was to be repaid in semi-annual instalments over 16-1/2 years from the end of 2018.

The new structure has a murabaha facility, a wakala facility and a conventional facility, all to be repaid over 15 years starting June 30, 2022.

"With abundant phosphate deposits in the north of Saudi Arabia, Ma'aden is well placed to build on its position as a leader in the global phosphates market," Chief Executive Mosaed al-Ohail said in the statement.

Ma'aden Wa'ad Al Shammal Phosphate Company is 60% owned by Ma'aden, 25% owned by Mosaic Company and 15% owned by SABIC. Ma'aden is majority owned by PIF.

($1 = 3.7505 riyals)

(Reporting by Yousef Saba; Editing by Stephen Coates and David Clarke) ((Yousef.Saba@thomsonreuters.com; +971562166204))