Mandated arrangers have closed syndication of the commercial loan for the bumper US$500mn Aluminium Bahrain BSC (Alba) phase II expansion project financing in
The 10-year facility was oversubscribed by over US$125mn but no increase has been taken up and commitments will be scaled back.
Joint mandated arrangers are Bank of Bahrain and Kuwait (bookrunners), Bank of Tokyo-Mitsubishi, Gulf International Bank (bookrunner), HSBC (bookrunner), Mizuho, National Bank of Abu Dhabi, National Bank of Bahrain, Qatar National Bank and Sumitomo Mitsui.
Co-arrangers signed up to US$20mn, lead managers US$15mn and managers US$10mn. The margin is 80bp over Libor for years one to three, 90bp for years and 105bp for years .
The commercial loan is part of the larger US$1.55bn expansion project. There are four tranches in all: a US$300mn metal-linked loan, an Islamic facility and a local bond issue. The metal-linked tranche is being arranged by Goldman Sachs and Gulf International Bank. Bank of Bahrain & Kuwait, Arab Banking Corporation, Dubai Islamic, Gulf International Bank, HSBC, Islamic International Bank, and Riyad Bank are arranging the Islamic tranche.
Taylor DeJongh is financial adviser for the project, together with Islamic Finance Consultants.