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28 November 2023

Emal smelter loan set to syndicate

By Agencies

A $4.94 billion (Dh18 billion) financing for Emirates Aluminium (Emal) will soon launch to general syndication via bookrunners BNP Paribas, Calyon, Royal Bank of Scotland and Standard Chartered Bank, a banking source said on Thursday.


The loan, which backs construction of a 700,000 tonnes per year aluminium smelter in Abu Dhabi, will be the first large Middle Eastern project financing to hit the loan market this year.


Abu Dhabi Commercial Bank, Mashreqbank and SMBCE joined the deal as initial mandated lead arrangers, while Citigroup, Emirates Bank International, Export Development Canada, Export Finance and Insurance Corp, Goldman Sachs and National Bank of Abu Dhabi are acting as mandated lead arrangers. Citigroup is also the financial adviser to Emal.


The financing, which funded in December, is split between a $1.87 billion (Dh6.82 billion), 16-year term loan, a $2.8 billion (Dh10.22 billion), six-year equity bridge loan and a $270 million (Dh985.5 million), 16-year letter of credit.


The banker said the deal has around $1 billion (Dh3.65 billion) to raise in general syndication after widening the mandated lead arranger group, and expected it to close oversubscribed.


Emal is a joint venture between Mubadala Development Co and Dubai Aluminium Co (Dubal).


Production is expected in 2010 and the smelter will be fully operational in 2011. (Reuters)