HSBC secures advisory mandate for Jizan aluminium smelter

25 September 2008
HSBC has been awarded the advisory mandate for a $5bn aluminium smelter to be built in the Jizan Economic City in Saudi Arabia.

In November 2007 Aluminum Corporation of China (Chalco) signed an agreement with MMC International Holdings of Malaysia and the local Saudi Binladin Group to develop the smelter (MEED 27:11:08).

MMC and Saudi Binladin are developing the city.

The project could require up to $4bn of debt, depending on the final debt:equity ratio on the development.

The mandate adds to HSBC’s work on the kingdom’s economic cities, following the award of a mandate for financial advisory on all the infrastructure work at the King Abdullah Economic City (MEED 29:8:08).

The latter mandate will cover infrastructure development, a port and an aluminium smelter, all of which could total more than $15bn.

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