Alba closes EUR204.5m export credit deal

Manama : Aluminium Bahrain (Alba) announced it has successfully closed the first part of 2nd tranche of EUR 204.5 million from Export Credit Agency (ECA).

The facility was used to finance the Green Anode Plant, Gas Treatment Centres, Pot Tending Machines and Anode Bake Furnace as well as related equipment for Alba’s Line 6 Expansion Project.

The facilities are made-up of: EUR 156.9 million Bpifrance Assurance Export (“BpiAE”) supported facility with an interest margin of 60 basis point per annum over EURIBOR – the BpiAE-covered facility has 11-year tenor wherein the principal amount is to be repaid over 10-year period; EUR 47.6 million Euler Hermes guaranteed Export Credit with an interest margin of 55 basis point per annum over EURIBOR – the Euler Hermes-covered facility has 11-year tenor wherein the principal amount is to be repaid over 10-year period.

Commenting on this milestone, Alba’s Chairman of Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa said: “We also look forward to secure the final part of 2nd ECA-tranche as we progress with the construction of Line 6 Expansion Project.”

Alba successfully closed a US$ 1.5 Billion syndicated term-loan facility comprising two tranches: Conventional Facility & and Islamic Facility in October 2016 as well as the first tranche of the Export Credit Financing of c. US$ 700 million for Euler Hermes and SERV-covered facilities in July 2017.