EGA launches syndication for US $4.9 billion term facilities

7-year loan earmarked to refinance existing project finance debt facilities.

United Arab Emirates: Emirates Global Aluminium PJSC (“EGA”), one of the world’s leading aluminium producers, announced the launch on 24  November 2015 of the syndication for its US$ 4.9 billion, 7-year corporate facilities comprising a conventional facility and a commodity murabaha facility (together the “Facilities”). Seven banks have been appointed to act as book-runners on the Facilities, including BNP Paribas SA (“BNPP”), Citibank, NA, London Branch (“Citibank”), Dubai Islamic Bank PJSC (“DIB”), Emirates NBD Capital Limited (“ENBD Capital”), ING Bank NV (“ING”), National Bank of Abu Dhabi PSJC (“NBAD”), and Natixis (“Natixis”).

Commenting on the launch of the transaction, Samer N Jumean, EGA’s Head of Financing and Capital Markets activities, said: “This marks the first of a series of transactions being implemented to optimise EGA’s capital structure”. He added that “an optimised capital structure is necessary for diversifying EGA’s funding sources and facilitating access to the capital markets.”

The proceeds from the Facilities, which are structured with a 3-year grace and a 30 per cent balloon payment on maturity, will be utilised to refinance existing project finance debt facilities which were secured in 2007 and 2012 by one of EGA’s operating assets, Emirates Aluminium PJSC (“EMAL”).

The syndication strategy will target EGA’s relationship banks including UAE, regional, Japanese, European and North American banks. Other regional and international lenders are also expected to participate in the Facilities.

Ahead of the launch of the syndication, EGA has secured the participation of the Export Development Canada (“EDC”), one of EGA’s key relationship banks.

Jumean added: “EDC’s commitment to extend financing to EGA is a testimony to the strong relationship we have with them, alongside the excellent credit standing we enjoy with world-class lending institutions.”

EGA expects to conclude the syndication process by year-end.