DUBAI: Emirates Global Aluminum, the biggest producer of aluminum in the Middle East, has obtained a loan of $5.5 billion that will be used to refinance $6.5 billion of debt taken on in 2019.
The company said in a statement the loan helps it deleverage and improve repayment terms to reduce costs and enable an optimal dividend policy in future years for shareholders.
The term loan facility reduces by $1 billion the size of EGA’s existing seven-year $6.5 billion loan facility signed in 2019, as strong aluminum prices and EGA’s operational performance drive liquidity at the company, it said.
“We have turned our focus to deleveraging to support EGA’s ambitions to further strengthen our balance sheet,” Chief Financial Officer Zouhir Regragui said in a statement.
“It will also support EGA’s ambitions to further strengthen our balance sheet and – if our shareholders wish it – become not only the UAE’s largest non-oil industrial company but also one of this country’s largest listed companies,” he said.
EGA has smelters in Abu Dhabi and Dubai and a bauxite mine in Guinea. The company generated revenue of $5.1 billion in 2020 and made earnings before interest, taxes, depreciation and amortization of $1.1 billion, according to media reports.
Citigroup Inc., Dubai Islamic Bank PJSC, Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC and Natixis SA coordinated putting the loan together, EGA said. Other bookrunners included BNP Paribas SA, Mitsubishi UFJ Financial Group Inc. and Standard Chartered Plc.