A subsidiary of Saudi Arabian Mining Company (Maaden) is borrowing SR4bn ($1.07bn) in loans to construct chemicals plants in the kingdom.

Maaden, the biggest mining firm in the region, said the Saudi Industrial Development Fund (SIDF) will provide four separate credit facilities to its subsidiary Maaden Waad al-Shamal Phosphate Company.

The company will use a SR900m loan to build an ammonia plant, while another SR900m facility will be used for the construction of a diammonium phosphate plant. Both loans will be repaid in 14 semi-annual instalments over seven years. The two plants will be built in Ras al-Khair, the parent company said in a bourse filing.

Two more loans of SR1bn and SR1.2bn will fund building plants to manufacture sulphuric acid, phosphoric acid and phosphate concentrate in Waad al-Shamal. These loans are for eight years and will be repaid in 16 semi-annual instalments, according to the statement.