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



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

DUBAI, June 23. (Reuters) – Emirates Global Aluminum, one of the world’s largest aluminum producers, is in talks with banks to refinance and change the terms of an approximately $ 6 billion loan provided in 2019, two sources with knowledge of this. 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.

The syndicated loan that EGA is trying to restructure was disbursed on January 28, 2019, for a total of $ 6.545 billion, according to Refinitiv.

A group of about 25 international and regional banks participated in the loan. Leading banks in the deal included BNP Paribas (BAES.PA), Citi (CN), Emirates NBD (ENBD.DU), ING (INGA.AS) and Natixis (CNAT.PA)

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

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