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08 September, 2016

Alba's Line 6 Syndicated Loan Draws Huge Demand

08 September 2016 Aluminium Bahrain B.S.C. (Alba), is pleased to announce commitments of US$ 1.5 billion for the commercial loan facility to finance the Company's Line 6 expansion project.Alba had originally planned to raise between US$500 million - US$750 million but increased the commercial loan facility size to US$1.5 billion due to heavy oversubscription which resulted in competitive market te

Albarsquo;s Chairman of Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa

Alba’s Chairman of Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa

08 September 2016
Aluminium Bahrain B.S.C. (Alba), is pleased to announce commitments of US$ 1.5 billion for the commercial loan facility to finance the Company's Line 6 expansion project.

Alba had originally planned to raise between US$500 million - US$750 million but increased the commercial loan facility size to US$1.5 billion due to heavy oversubscription which resulted in competitive market terms. The US$1.5 billion commercial facility will carry an interest margin of 325 basis point per annum over the London Interbank Offered Rate (LIBOR). This facility is expected to have a 7-year tenor and the principal amount repayable in eight semi-annual instalments, including a 3-year grace period on principal payments to support the Line 6 construction period.

The commercial loan facility will comprise 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 behalf of the Company, Alba's Chairman of Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said:

"We are pleased with the success of these landmark commitments, which will be the largest syndicated loan structure in the history of the Kingdom of Bahrain. This clearly reflects the overwhelming support towards the Line 6 Expansion Project, which is one of the biggest mega projects in Bahrain and the GCC. The overwhelming demand is a testament to Alba's solid balance sheet and the strong underlying fundamentals of the Line 6 Expansion Project."

Gulf International Bank B.S.C., J.P. Morgan Limited, and National Bank of Bahrain B.S.C. are acting as Global Coordinators to assist Alba in arranging the commercial loan facility.

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.

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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

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