Emirates Global Aluminium raises $4.9 billion of syndicated debt to refinance loans

The loans were secured in 2007, renewed in 2012 and were used to fund its expansion.

Emirates Global Aluminium (EGA) is raising US$4.9 billion through a seven-year syndicated debt facility to refinance existing loans.

Samer Jumean, EGA’s head of financing and capital markets, said it “marks the first of a series of transactions being implemented to optimise EGA’s capital structure”.

The loans, which were secured in 2007, and renewed in 2012, were used to fund its expansion. The company has appointed seven banks as bookrunners.

Meanwhile, EGA has also awarded a contract to the Spanish renewables specialist Abengoa to build its first cogeneration plant.

The Spanish firm will initially carry out a $50 million preparatory works deal for a cogeneration plant at EGA’s main Al Taweelah complex in Abu Dhabi. This includes site mobilisation, basic and detailed engineering plans and the purchase of long lead items needed to build the facility.

However, it is expected to pave the way for a deal worth an eventual $215m that will include the plant’s construction.

The cogeneration plant will have a capacity of 220 megawatts and be capable of generating up to 600 tonnes of steam per hour. Its construction is expected to generate about 750 jobs.

Adil Toubia, the chief executive of Al Ghurair Investment, also revealed at yesterday’s Dubai Chamber CEO Forum that it is building a $14m cogeneration power plant to serve the Al Ghurair Resources Refinery and the oils and proteins businesses in the Jebel Ali Free Zone.

The plant will be completed by the end of the year, said Mr Toubia.

“It not only generates power, [but] it also generates steam. We use that steam for our own processes in the plant. This will reduce the carbon footprint that we generate by 30 per cent,” he said.

Al Ghurair Resources estimates the plant will reduce the amount of carbon dioxide produced by 2,000 tonnes a month, but will also pay for itself in under three years as a result of the savings made in utilities costs.

“After two-and-a-half years it will save us money, so it’s definitely a worthwhile investment,” added Mr Toubia.

EGA is now one of the world’s top five aluminium producers, with its Al Taweelah Complex now producing about 1.3 million tonnes of aluminium per year following an investment of more than $10bn since it was inaugurated in 2009.

A further $3bn is being spent on an alumina refinery due to complete at the end of 2017.

The facility, which was built by Mubadala, was merged with Investment Corporation of Dubai’s Dubai Aluminium (Dubal) plant in 2013.

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