Emirates Global Aluminum in talks to refinance $ 6bn loan – sources

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PHOTO: The Dubai Aluminum logo can be seen in Jebel Ali, Dubai on December 2, 2009 REUTERS / Steve Crisp

DUBAI (Reuters) – Emirates Global Aluminum, one of the world’s largest aluminum producers, is in talks with banks to refinance and change the terms of the approximately $ 6 billion loan provided in 2019, two knowledgeable sources said on Wednesday. …

The United Arab Emirates firm, which is equally owned by the Abu Dhabi state fund Mubadala and the Dubai Investment Corporation, is seeking to extend and reduce the price of the seven-year loan through a refinancing facility to take advantage of the low rates. sources said.

“EGA is fortunate to have a large group of banks supporting our business. We are always looking for ways to optimize our financial arrangements, ”the company said in response to a Reuters request for comment.

EGA’s fundraising efforts are underway as borrowers in the Gulf are looking to improve their financing arrangements to reflect better market conditions since last year’s coronavirus-driven downturn.

EGA, which produces 4% of global aluminum production, took out over $ 6 billion in early 2019 to refinance a $ 4.9 billion loan secured in December 2015 and to fully repay a $ 1.8 billion loan. dollars raised by a subsidiary of EGA, Dubai Aluminum.

According to Refinitiv, the syndicated loan that EGA is trying to restructure was disbursed on January 28, 2019 and amounted to $ 6.545 billion.

A group of about 25 international and regional banks participated in the loan. The banks leading the deal included BNP Paribas, Citi, Emirates NBD, ING and Natixis.

The company reported in March that its annual adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the 12 months ended December 31 rose to AED 4.1 billion ($ 1.13 billion) from AED 2.5 billion. a year earlier, helped by product flexibility. control of costs and an increase in the number of new projects in the field of exploration and production.

Reporting by Davide Barbush and Yousef Saba; editing by David Evans

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