Wednesday, Feb 22, 2012
DUBAI (Zawya Dow Jones)--Abu Dhabi government-owned Mubadala Development Company is hoping to see a financing package finalized by mid-year for a new $4.5 billion construction phase at Emirates Aluminum that will almost double the smelter's production capacity, a top executive said Wednesday.
Matthew Hurn, the executive director of Mubadala's treasury unit, said on the sidelines of a conference in Dubai that financing plans for the extension were well underway, but that no final decision had been made on the structure of the deal.
"There are various ways of financing," he said. "Is it the bank market, is it the capital markets? There are various bits inbetween them as well. We look to what's going to be the optimal financing strategy at that particular time, taking into account market conditions."
"It would be nice to jump in by the mid-year," he added.
Mubadala owns 50% of Abu Dhabi-based Emirates Aluminum, which reached its full 750,000-metric-tonne first-phase production capacity in late 2010. The remaining share of the company is held by Dubai Aluminium.
The second phase of Emirates Aluminium, approved by the company's board of directors last July, is expected to boost production capacity to 1.3 million metric tonnes of the metal per year.
Mubadala itself had no immediate financing needs, Hurn said, but was monitoring capital markets and other financing options as it maintained a dialogue with investors and banks.
-By Asa Fitch, Dow Jones Newswires, +971 4 446-1685, asa.fitch@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
22-02-12 1031GMT
