Emirates Aluminium Company (Emal) has launched general syndication on its US$4.9bn limited-recourse financing for an aluminium smelter project in Al Taweelah in Abu Dhabi. Emal is a joint venture between Mubadala Development Company and Dubai Aluminium.
General syndication was originally intended to be launched in January, before being delayed until February to avoid the slowdown around Chinese New Year and to attract Chinese banks into the deal.
The deal consists of a US$1.8bn 16-year term loan, a US$270mn letter of credit facility, and a US$2.8bn six-year equity bridge loan.
The margin being paid on the transaction is 55 basis points pre-completion, rising to between 70 and 110bp post completion.
Financial advisors to Emal were Citigroup and law firm Sullivan and Cromwell. A syndicate of international and regional banks arranged the financing, and this was led by Abu Dhabi Commercial Bank, BNP Paribas, Calyon, Royal Bank of Scotland, Standard Chartered, SMBC, Citigroup, Emirates Bank International, Export Development Canada (EDC), Export Finance and Insurance Corporation (EFIC), Goldman Sachs Credit Partners, Mashreqbank, and National Bank of Abu Dhabi.
This financing is for the first phase of Emal's planned aluminium smelter, to be capable of producing 700,000 tonnes per year of aluminium, and to be constructed at the Khalifa Port and Industrial Zone in Abu Dhabi.
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