Sources claiming knowledge of the situation told Reuters that Emirates Global Aluminium PJSC (EGA) is in talks with various financial institutions to renegotiate a US$6-billion loan it arranged in 2019.
According to the sources, the talks involve enlarging the tenor and shrinking the pricing of the seven-year loan. The firm hopes to take advantage of the current low interest rates to refinance the loan on more advantageous terms.
EGA demurred when asked by the wire service about the rumors.
“EGA is fortunate to have a large relationship bank group who support our business. We are always looking at ways to optimise our financing arrangements.”
The firm is one of several Gulf-area companies making moves to negotiate better deals on their financing arrangements. The 2019 instrument was a refinance of a US$4.9 billion loan arranged in late 2015 that also satisfied a different US$1.8-billion instrument entered into by subsidiary Dubai Aluminium.
Among the financing firms that participated in the 2019 loan are BNP Paribas, Citi, Emirates NBD, ING, and Natixis.
Based in Abu Dhabi, United Arab Emirates, Emirates Global Aluminium is an aluminium conglomerate created by the merger between Dubai Aluminium (DUBAL) and Emirates Aluminium (EMAL) in 2013. EGA had an estimated enterprise value of US$15 billion at the time the merger took place. The firm is owned equally by Mubadala Development Company of Abu Dhabi and Investment Corporation of Dubai. Emirates Global Aluminium holds interests in bauxite/alumina and primary aluminium smelting.