Alba successfully closes $1.5 billion syndicated loan

Aluminium Bahrain B.S.C. (Alba), home-base of the Line 6 Expansion Project, is pleased to announce the successful closing for its landmark syndicated term-loan facility, the first tranche of the Company’s funding plan for the Line 6 Project.

Alba’s original target for the syndicated loan was to raise between US$500 to US$750 million.  However, due to heavy over subscription, Alba decided to upsize the loan to US$1.5 billion making it the largest corporate loan in the history of Bahrain.  The US$1.5 billion carries an interest margin of 325 basis point per annum over the London Interbank Offered Rate (LIBOR). This facility has a 7-year tenor and the principal amount will be repaid in eight semi-annual instalments and includes a 3-year grace period on principal payments to support the Line 6 construction period.

This facility comprises two tranches: a US Dollar-denominated senior unsecured conventional term-loan facility (the Conventional Facility) of US$ 882 million and a US Dollar-denominated senior Shari’ah-compliant facility (the Islamic Facility) of US$ 618 million.

Commenting on the successful raising of the loan tranche, Alba’s Chairman of Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said:
“The success of the Line 6 syndicated loan facility underscores Alba’s strong business fundamentals and the confidence the financial markets have in the Line 6 Expansion Project.  We look forward to the full execution of the Line 6 project which upon completion will make Alba the largest single site smelter in the world.’’

Gulf International Bank B.S.C., J.P. Morgan Limited, and National Bank of Bahrain B.S.C. acted as Global Coordinators to assist Alba in arranging the Facilities.

Expected to start metal production in early 2019, Line 6 Expansion Project will boost the per-annum production by 540,000 metric tonnes upon its full ramp-up, bringing Alba’s total production capacity to 1,500,000 metric tonnes per annum to make Alba the world’s largest single-site aluminium smelter.

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