Bahrain Alba Names BNP Paribas as Advisor for Expansion Financing Options

Monday, Jul 23, 2012

DUBAI (Zawya Dow Jones)--Aluminium Bahrain (ALBH.BH), or Alba, Monday named BNP Paribas (BNPQY) as an advisor to help it assess financing options related to the estimated $2.5 billion expansion of the company's smelter to include a sixth potline.

"The consummation of the project and the related financing are subject to the completion of a feasibility study, government and board approvals of the project and other conditions customary for a project of this nature," Alba said in a statement. "Work on the feasibility study is expected to commence by the end of this year."

Alba's last major expansion project worth $1.7 billion took place in 2005 when it added a fifth potline to its smelter. The financing required for the completion of the new potline is estimated at $2.5 billion.

Alba, one of the largest aluminum smelters in the world, was established in 1968, and is majority owned by Bahrain's sovereign wealth fund, Mumtalakat Holding Co., with Saudi petrochemical giant Saudi Basic Industries Corp., better known as Sabic, also holding a stake.

The company's shares closed Monday 0.9% higher at BHD0.54.

-By Tim Falconer, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com; Twitter: @ZDJnews

(END) Dow Jones Newswires

23-07-12 1226GMT