Saudi Arabian Mining Company (Ma’aden) has successfully raised $1.25 billion from its first international issuance of senior unsecured Sukuk, marking one of the most successful inaugural Sukuk offerings in Saudi Arabia’s history.
The issuance consists of two tranches. The first tranche, with a five-year maturity, is valued at $750 million, comprising 3,750 certificates with an annual yield of 5.25%, maturing on February 13, 2030. The second tranche, with a ten-year maturity, is worth $500 million, distributed across 2,500 certificates, offering an annual yield of 5.5%, and maturing on February 13, 2035.
Investor demand significantly exceeded expectations, with total orders reaching $11.5 billion, more than 9.2 times the issuance size. Ma’aden stated that this overwhelming interest was driven by strong demand from global fixed-income investors, underscoring its attractiveness as an investment and its leading role in developing Saudi Arabia’s mining sector, considered the third pillar of the national economy under Vision 2030.
Ma'aden CEO Bob Wilt emphasized that the success of the company’s first international Sukuk issuance demonstrates investor confidence in Ma’aden’s growth strategy.
“The market appetite for investing in Saudi Arabia, in mining, and in Ma’aden specifically, is strong, and a sign of the untapped potential seen in the kingdom,” he said.
He added that as the company continues implementing its ambitious growth strategy, this financing will support efforts to secure essential minerals that drive the energy transition and long-term sustainable development.
Wilt further reaffirmed Ma’aden’s commitment to building a globally competitive mining sector that serves as the third pillar of Saudi Arabia’s economy.
Ma’aden’s Executive Vice President of Finance, Louis Irvine, commented that the successful Sukuk issuance reflects the company’s financial discipline and strong investor confidence in its future.
He welcomed the participation of new investors, stating that their support would play a vital role in solidifying Ma’aden’s position as a key driver of the mining sector’s growth. He also noted that the proceeds from this issuance will enable the company to effectively execute its expansion strategy across all business segments while maintaining a strong financial structure to support sustainable growth.
Ma’aden holds a Baa1 rating with a stable outlook from Moody’s and a BBB+ rating with a stable outlook from Fitch. The Sukuk are expected to receive the same credit ratings as the company.
The company, in which Saudi Arabia’s Public Investment Fund (PIF) holds a majority stake, appointed a consortium of global and regional banks to manage the issuance. These include Citigroup Global Markets Limited, HSBC, Al Rajhi Capital, BNP Paribas, GIB Capital, J.P. Morgan Securities, Natixis, Saudi Fransi Capital, SNB Capital, and Standard Chartered Bank as joint lead managers.
