EGA looks at refinancing its underwritten debts of about US$6.7 billion

According to banking sources, Emirates Global Aluminium (EGA) is looking to potentially refinance up to US$6.7 billion of its debt.

EGA, a merger entity of Dubai Aluminium (Dubal) and Abu Dhabi’s Emirates Aluminium is jointly owned by Abu Dhabi investment fund Mubadala and state company Investment Corporation of Dubai.  Dubal is still an entity within EGA that can borrow money independently. 

According to the data from LPC, a fixed income news service that is part of Refinitiv, EGA’s debt includes a US$4.9 billion seven-year loan, which was declared underwritten and signed by seven banks in March 2016, and a $1.8 billion seven-year loan signed by Dubal in January 2015.

According to a banker the refinancing deal will pay back some or the entire 2016 loan, and amend and extend some of its existing facilities and potentially add some new financing. It was further added that the refinancing might be launched in two stages of syndication.

EGA confirmed through an email statement that the company is in talk with its banks but they have not made any final decision yet or made any progress.

“We can confirm that EGA is working with some of our core relationship banks to identify opportunities to benefit from the current debt market liquidity to optimise its corporate debt position,” the statement said.

EGA’s US$4.9 billion loan included a three-year grace period and a balloon payment of 30 per cent on maturity. The loan was declared underwritten by senior banks BNP Paribas, Citigroup, Dubai Islamic Bank, Emirates NBD, ING, National Bank of Abu Dhabi and Natixis in 2016.

 In January 2015 Dubal closed a $1.8 billion seven-year loan  to fund its general business purposes in two decades. It was also underwritten by Citigroup, Emirates NBD and Societe Generale.