Funds were originally raised as project finance for Al Taweelah smelter plant.
The UAE’s industrial giant, Emirates Global Aluminium, has repaid in full $361 million it had raised as project finance from 13 banks and export credit agencies. The funds were used for a major expansion at its Al Taweelah smelter plant in Abu Dhabi.
The funds relate to two tranches that was taken out, and were repaid four- and seven-years before they became due. The early repayment “further deleverages EGA and is an important part in the company’s capital structure optimisation strategy,” the company said in a statement.
EGA’s financing has been reduced by over $1 billion in the last two years and now comprises a senior term loan facility of $5.5 billion. The EGA subsidiary Guinea Alumina Corporation has a $700 million project finance facility which was secured in 2019.
Paying off
The project financing was extended to Emirates Aluminium, now an EGA subsidiary, for Phase 1 of the Al Taweelah project in 2010 and later Phase 2 in 2013, each with a tenor of 15 years. The repayment four years and seven years early totalled $361 million.
“This further deleveraging simplifies our debt structure and strengthens our balance-sheet for the next stage in our corporate journey,” said Zouhir Regragui, EGA’s Chief Financial Officer. “We have been able to de-lever successfully in 2021 while generating returns for our shareholders due to the enduring strength of our business and robust demand for our metal.”
(Except for the headline, this story has not been edited by The Finance World staff and is published from a syndicated feed.)
