Dubai: Emirates Global Aluminium (EGA), the largest industrial company in the UAE outside of the oil and gas sector, has secured a $6.5 billion corporate debt taking advantage of market conditions. The refinancing programme is expected to optimise its capital structure by reducing the cost of debt, create more flexibility on the repayment, and on the overall debt.

“Building on the previous transaction in 2015, this transaction further consolidates our debt at the EGA level, and strengthens our credit profile,” said Danny Dweik, EGA’s Chief Financial Officer in a statement. “Going forward, EGA will strive to further fortify its balance sheet and diversify its sources of financing.”

The term loan facility amends, extends and upsizes EGA’s existing $4.9 billion term loan agreed in December 2015. The proceeds from the increase in facility size have been used to fully repay a $1.8 billion term facility extended to EGA’s subsidiary Dubai Aluminium (DUBAL).

“The transaction was oversubscribed with most banks being scaled back below their committed amounts,” said Danny Dweik, EGA’s Chief Financial Officer.

Citi, First Abu Dhabi Bank, BNP Paribas, Emirates NBD, ING and Natixis acted as coordinators, bookrunners and mandated lead arrangers.