Saudi Arabia: The Saudi Arabian Mining Co., or Ma’aden, priced its $1.25 billion debut sukuk, oversubscribed by 9.2 times, with demand exceeding $11 billion for the five and ten-year tranches, according to an official statement.

In a bourse filing, the company said it had completed the sukuk issuance through US dollar-denominated trust certificates, adding that they will be listed on the London Stock Exchange’s International Securities Market and may be sold under Regulation S and Rule 144A of the amended US Securities Act of 1933.

The Tadawul statement said Ma’aden’s $1.25bn Shariah-compliant bond was issued in two tranches, including a five-year $750m tranche at 5.25 percent and a 10-year $500m tranche at 5.5 percent. The issuance includes 3,750 trust certificates for the five-year tranche and 2,500 for the 10-year, each valued at $200,000. Settlement is set for Feb. 13.

CEO of Ma’aden Bob Wilt said the success of the inaugural international sukuk offering demonstrates investors’ confidence and interest in Ma’aden’s growth, according to a press release.

“Such strong international investor demand, some of the highest seen in Saudi Arabia, is testament to global confidence in our strategic direction and the integral role we play in unlocking Saudi Arabia’s $2.5 trillion of untapped mineral potential,” the CEO said.

Wilt added that as they continue to deliver on their growth strategy, the funding will accelerate their efforts to secure essential minerals that drive the energy transition and long-term development. “We remain committed to building a globally competitive mining sector as the third pillar of Saudi Arabia’s economy.”

Louis Irvine, the chief financial officer of Ma’aden, said the “successful” sukuk issuance reflects the strength of their business, their disciplined financial strategy, and the confidence global investors have in the future of the company.

“We are particularly pleased to welcome new investors whose support will be instrumental as we continue to build mining as the third pillar of the Saudi economy, a key objective of the Kingdom’s Vision 2030. The funds raised will enable us to execute our expansion plans across all our divisions efficiently while maintaining a robust balance sheet as we move forward.”

The issuance aligns with forecasts that global sukuk offerings will total between $190 billion and $200 billion in 2025, driven by growing activity in key markets such as the Kingdom and Indonesia, according to a January analysis by S&P Global.

Global sukuk issuances totaled $193.4 billion in 2024, a slight decrease from $197.8 billion in 2023. Despite the marginal decline, the market saw a 29 percent year-on-year increase in foreign-currency-denominated sukuk, surging to $72.7 billion in 2024.

Under Ma’aden’s International Trust Certificate Issuance Program, the move highlights the company’s strong financial position and demonstrates investor confidence in its long-term growth strategy. 

The sukuk issuance proceeds will support the mining giant’s expansion initiatives and further solidify its standing as a leading mining and metals enterprise in the Kingdom and beyond.

The national mining company announced that Citi and HSBC acted as joint global coordinators, joint active bookrunners, and joint lead managers, while Al Rajhi Capital, J.P. Morgan, and SNB Capital served as joint active bookrunners and joint lead managers.

BNP Paribas, BSF Capital, GIB Capital, Natixis, and Standard Chartered Bank acted as joint passive bookrunners and joint lead managers, while HSBC also served as rating advisers.

The firm, rated “Baa1” by Moody’s and “BBB+” by Fitch, said the sukuk are expected to be rated on par with Ma’aden’s ratings.

In January, Ma’aden awarded three contracts worth SR3.45 billion ($921.58 million) for its third phosphate fertilizer plant, according to a filing with Tadawul at that time.