Reuters reported that Saudi Arabian Mining Company,Maaden,which has an aluminium JV with Alcoa,raised SAR 9 billion through an Islamic loan facility to help fund its future projects.

Maaden in a bourse statement said that the murabaha structured revolving credit facility has a life of five years and was increased from the SAR 7 billion initial target amount which the bank announced in June.

A murabaha is a sharia compliant cost plus profit arrangement.

The statement said that in all commitments from the banks covered the facility's final amount by 2.5 times.

Maaden runs Saudi Arabia's first aluminium smelter in a JV with US based Alcoa.The Saudi firm added that late last month the plant would not reach full capacity on schedule due to power supply issues.

In March,Maaden outlined plans to add a new production line,with a capacity of 100,000 tonnes per year,at its aluminium JV to produce sheets used in the automotive and construction industries.

Source-Reuters