Bahrain, 28 August 2008 - Baker & McKenzie has announced that it has acted for Saudi Arabian Mining Company (Ma'aden) and Saudi Basic Industries Corporation (SABIC), the joint sponsors of Ma'aden Phosphate Company (MPC), in relation to syndicated facilities totalling US$3.86 billion in relation to MPC's US$5.6 billion phosphate project.

The transaction comprised US$1.76 billion Islamic commercial facilities, a US$298 million commercial term facility, a US$200 million Korean Export Insurance Corporation covered facility, a US$400 million facility provided by the Export-Import Bank of Korea, a US$100 million working capital facility and a US$1.067 billion facility to be provided by the Public Investment Fund of Saudi Arabia. A further US$135 million facility is anticipated to be provided by the Saudi Industrial Development Fund.

Ma’aden Phosphate Company aims to exploit a phosphate deposit located in the Al Jalamid Site, in the north of the Kingdom, and utilise natural gas and sulphur resources to manufacture Diammonium Phosphate (DAP) fertilizer.

The Baker & McKenzie team was led by partner Ian Siddell and also involved partners Julie Alexander, Caroline Long and Dr Nasser Al Faraj and associates Mohamed Hassan, Delwar Hossain and Omar Al Ansari. 

Commenting on the transaction, partner Ian Siddell, said: “This transaction reflects a huge investment in the exploitation of the natural resources in Saudi Arabia, and highlights our Gulf finance teams' ability to structure and implement complex multi source project financings including both Islamic and conventional finance components."