Emirates Global Aluminium PJSC, has obtained a $5.5 billion syndicated loan that replaces a larger facility. The company is also Middle East’s biggest producer of the metal.
“We have turned our focus to deleveraging to support EGA’s ambitions to further strengthen our balance sheet. It would also help any plans to list the company should our shareholders wish it,” chief financial officer Zouhir Regragui said in a statement.
This new 7 year loan will be used to refinance $6.5billion of debt taken on in 2019.
The new loan reduces EGA’s funding costs. It will also enable an optimal dividend policy in future years for shareholders”, Regragui said.
EGA is equally owned by two sovereign wealth funds – Investment Corp. of Dubai and Abu Dhabi’s Mubadala Investment Co. Mubadala. Both parties said in April that it was close to an initial public offering of the company. This offering may be valued around $15billion to $20billion.
The company generated revenue of $5.1billion in 2020 and made earnings before interest, taxes, depreciation and amortisation of $1.1billion.
According to EGA, Citigroup Inc., Dubai Islamic Bank PJSC, Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC and Natixis SA coordinated putting the loan together. While the list of other bookers included BNP Paribas SA, Mitsubishi UFJ Financial Group Inc. and Standard Chartered Plc.
The company, Emirates Global Aluminium has smelters in Abu Dhabi and Dubai and a bauxite mine in Guinea