UAE's Emirates Global Aluminium, one of the world's largest producers, has agreed a revolving credit facility tied to the term Secured Overnight Funding Rate (SOFR), one of the first in the region to use the emerging rate.

The new committed revolving credit facility provides EGA access to $137.5 million, with a term extended by 12 months, it said in a statement on Monday.

In total, EGA continues to have $737.5 million of committed revolving credit facilities.

Participating banks include Abu Dhabi Commercial Bank, Emirates NBD, and Commercial Bank of Dubai.

The SOFR is the benchmark rate that is increasingly replacing the London Interbank Offered Rate, which has been the subject of market manipulation accusations. 

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@lseg.com