Case study: Wa’ad Al Shamal

Portland acted as financial adviser to Korean Export-Import Bank (KEXIM), Korean Trade Insurance Corporation (KSURE) and PIF (the Public Infrastructure Fund of Saudi Arabia) on the US$ 6.5 billion Wa’ad Al Shamal phosphate mine and fertiliser complex in the Kingdom of Saudi Arabia.

The project sponsors were the Saudia Arabian Mining Company, (Ma’aden), The Mosaic Company (Mosaic) and Saudi Basic Industries Corporation, (SABIC). The Portland team of Geoff Knox, Harry Philp and Kevin Curtis were responsible for advising the above lenders on all financial aspects of the project including:

• Developing an acceptable risk allocation structure for the project including elements of sponsor support for certain key project risks.
• Assisting in the negotiation of the term sheet.
• Working with the market consultant to understand the pricing dynamics of the global fertiliser business and to develop sensitivity cases.
• Working with the technical consultant to understand the technology issues in the project, develop sensitivity analysis scenarios and to develop a completion testing regime.
• Running the financial model on behalf these lenders and conducting sensitivity analysis.
• Reviewing all project agreements and EPC arrangements including the railway and port aspects of the project and marketing agreements for the project’s offtake.
• Assisting the lenders with their credit approval processes.

The transaction closed in April 2014.

For further information contact Geoff Knox at geoff.knox@portlandadvisers.com