ALBA - Aluminum Bahrain

ALBA Line 6 Expansion Project - Refinancing

Industry
Metals and Mining/Base metals
Area of finance
Project & Infrastructure Finance
Region
Middle East
Countries
Bahrain

Deal Overview

Aluminium Bahrain (Alba) has closed an eight-year sustainability-linked loan that refinances its $1.247 billion corporate loan from late 2019, a deal that was itself a refinancing of a 2016 corporate facility that part funded Alba’s $3 billion Line 6 expansion project.The two-tranche...

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Aluminium Bahrain (Alba) has closed an eight-year sustainability-linked loan that refinances its $1.247 billion corporate loan from late 2019, a deal that was itself a refinancing of a 2016 corporate facility that part funded Alba’s $3 billion Line 6 expansion project.

The two-tranche eight-year deal comprises a $537.5 million senior unsecured commercial term-loan facility and a $710 million senior Islamic facility. It pays a margin of 235bp over SOFR and the credit adjustment spread, down from 300bp over Libor on the existing loan. The margin is subject to an adjustment upwards or downwards on an annual basis of up to 2.5bp tied to three sustainability-linked key performance indicators: total waste recycled, training hours and lost time injury frequency’s incident count. The new debt facility was lead arranged by ABC, GIB and National Bank of Bahrain (NBB) as coordinators and underwriters and NBB and Standard Chartered as joint ESG coordinators. In total 21 banks have committed to the deal.

The Line 6 project was originally funded via various ECA-backed facilities closed between 2017 and 2019, and a $1.5 billion corporate facility closed in 2016.

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Deal Volume
$ 1.25bn
Financial Close
27 April 2022

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Tranches


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Projects

ALBA Line 6 Expansion Project

Brownfield
Base metals
Middle East
Bahrain
$ 3bn