DUBAI: State-owned Emirates Global Aluminium (EGA), one of the largest aluminium firms in the world, has invited banks to participate in a $4.9 billion loan to refinance existing project finance debt, the company said on Monday.
EGA, created by the merger of state-owned aluminium companies Dubai Aluminium (Dubal) and Abu Dhabi's Emirates Aluminium (Emal), will raise funds with a seven-year lifespan. The deal will include both conventional and Islamic debt.
The announcement confirmed a Reuters report on Sunday which said the company had mandated BNP Paribas, Citi, Dubai Islamic Bank, Emirates NBD, ING, National Bank of Abu Dhabi and Natixis to arrange the loan.
The price at which the loan was launched was not disclosed by the company.
"This marks the first of a series of transactions being implemented to optimise EGA's capital structure" said Samer Jumean, EGA's Head of Financing and Capital Markets activities.
The loan has been structured with a three-year grace period and a balloon payment of 30 percent on maturity, the statement said.
The loan will be used to refinance existing project finance debt facilities which Emirates Aluminium secured in 2007 and 2012.
EGA has also secured the participation in the refinancing of Export Development Corp of Canada, the company added. The firm is jointly owned by Abu Dhabi investment fund Mubadala and the state company which holds Dubai's most high-profile assets, Investment Corp of Dubai.
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