UAE industrial giant Emirates Global Aluminium pays off $361m debt ahead of schedule
Funds were initially raised as project finance for Al Taweelah smelter plant
Dubai: The UAE’s biggest non-oil industrial company, 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.”
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