UAE - Mubasher: Emirates Global Aluminium (EGA), owned equally by Mubadala Investment Company and the Investment Corporation of Dubai, is holding talks with banks to refinance and change the terms of its seven-year loan raised in 2019, two sources told Reuters.
The sources referred that the company's discussions with banks aim to extend the tenor and lower the pricing of the around $6 billion loan through a refinancing facility to benefit from low rates.
In January 2019, EGA has been granted a loan of $6.545 billion to refinance a $4.9 billion loan secured in December 2015 and fully repay a $1.8 billion loan secured by the company's subsidiary Dubai Aluminium.
A group of about 25 international and regional banks participated in the loan, including BNP Paribas, Citi, Emirates NBD, ING, and Natixis.
"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 company told Reuters in a request for comment.
It is noteworthy to mention that in 2020, the EGA's adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) jumped by 63% to AED 4.1 billion from AED 2.5 billion in 2019.
