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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.
The group of Mandated Lead Arrangers and Bookrunners consists of Standard Chartered Bank (Hong Kong) Limited, Arab Banking Corporation (B.S.C.), ABC Islamic Bank (E.C.), Gulf International Bank B.S.C., Ahli United Bank B.S.C., National Bank of Bahrain B.S.C., BBK B.S.C. and Crédit Agricole Corporate and Investment Bank.
The group of Lead Arrangers consists of The Saudi National Commercial Bank, Riyad Bank, National Bank of Kuwait S.A.K. - Bahrain Branch, Arab Petroleum Investments Corporation (APICORP), Kuwait Finance House (Bahrain) B.S.C. (c) and National Bank of Abu Dhabi (Bahrain Branch).
The group of Arrangers consists of Burgan Bank K.P.S.C., Noor Bank PJSC, Mashreqbank PSC, Bahrain Islamic Bank B.S.C., Arab Bank plc – Retail Branch, Al Baraka Islamic Bank B.S.C. (c), Bank of Baroda and Al Ahli Bank of Kuwait K.S.C.P.
National Bank of Abu Dhabi (Bahrain Branch) acted as the Global and Conventional Agent while Riyad Bank acted as the Islamic Agent.
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.
-Ends-
Alba’s Chairman of Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa
About Alba:
Aluminium Bahrain B.S.C. (Alba) - one of the largest and modern aluminium smelters in the world - is renowned for its premium grade aluminium products, technological strength and innovative policies, strict environmental guidelines and high track record for safety. Established in 1971 as a 120,000 tonnes per annum smelter, Alba today produces more than 960,000 metric tonnes per annum of the highest grade aluminium, with products including standard and T-ingots, extrusion billets, rolling slab, properzi ingots, and molten aluminium.
Alba is listed on both the Bahrain Bourse and London Stock Exchange, and the Company’s shareholders are Bahrain Mumtalakat Holding Company (69.38%), SABIC Industrial Investment Company (20.62%) and the General Public (10%).
About Line 6 Expansion Project:
Alba’s Line 6 Expansion Project is one of the largest brownfield developments in the region. Expected to begin production by early 2019, this Project will boost the smelter’s per-annum production by 540,000 metric tonnes, bringing its total production capacity to around 1.5 million metric tonnes per year.
With a CAPEX of approximately US$ 3 billion, the Line 6 Expansion Project involves the construction of a sixth pot line utilising EGA’s proprietary DX+ Ultra Technology, a 1,792 MW power station and other industrial services.
Bechtel is the EPCM contractor for the Line 6 Expansion Project smelter. For Power Station 5 (PS 5), GE and GAMA Consortium was awarded the EPC contract, while Siemens is the Power Distribution System contractor. J.P. Morgan Limited, Gulf International Bank (GIB) and National Bank of Bahrain (NBB) are the Financial Advisors for this Project.
The Bankable Feasibility Study was completed by Bechtel in December 2014. In June 2015, Alba Board approved the Line 6 Expansion Project and in November 2015, Alba secured the natural gas supply for this Project.
The Line 6 Expansion Project will make Alba the world’s largest single-site aluminium smelter and be a significant economic boost for the Kingdom of Bahrain due to the many co-investment opportunities through local and foreign aluminium investments.
For further details, please contact:
Eline Hilal
Manager – Investor Relations, Public Relations &
Corporate Secretary
Investor Relations & Public Relations Department
Tel: (973) 1783 5100 (direct)
Fax: (973) 1783 3822
E-mail: eline.hilal@alba.com.bh
Website: www.albasmelter.com.bh
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© Press Release 2016
