EGA concludes a USD6.5bn corporate debt transaction

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Emirates Global Aluminium has successfully completed a USD6.5 billion term loan facility with a group of leading global and regional banks.

The refinancing of EGA’s corporate debt optimises the company’s capital structure by reducing the cost of debt, creating more flexibility for repayment, and aggregating debt at the EGA level. The term loan facility amends and extends EGA’s existing USD4.9 billion term loan facility agreed in December 2015. The proceeds from the increase in facility size have been used to fully repay a USD1.8 billion term loan facility extended to EGA’s subsidiary Dubai Aluminium.

Danny Dweik, EGA’s head of Finance, said: “This refinancing is another major step in the implementation of our capital structure strategy. Building on the previous transaction in 2015, this transaction further consolidates our debt at the EGA level, and strengthens our credit profile. Going forward, EGA will strive to further fortify its balance sheet and diversify its sources of financing.”

The USD6.5 billion term loan is a senior unsecured facility with a seven-year tenor and a flexible repayment profile allowing EGA to proactively manage its leverage and cash position. 25 global and regional banks participated in this transaction.

Zouhir Regragui, EGA’s Senior Vice President for Strategy, Corporate Development and Capital Markets, said: “While our existing loans do not mature till 2021-22, we felt the current market conditions offered an excellent opportunity to proactively optimise our maturity profile. We have been pleased by the significant demand in the market for our debt, both from long-standing banking partners and new lenders. As a result, we have been able to obtain very attractive financing terms and decrease our cost of capital as we begin a transformative year, during which our strategic upstream growth projects in Abu Dhabi and Guinea will begin production.”

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