Dubai Aluminium’s (Dubal) $1.8 billion seven-year term loan pays an interest margin of 145 basis points (bps) over Libor, according to a banking source close to the deal.
The three arranging banks Citigroup, Emirates NBD and Societe Generale, which fully underwrote the deal, launched the deal into syndication earlier this week.
Banks have been invited to commit $200 million to the amortising loan for a 90 bps upfront fee, the source said.
Proceeds will be used to help fund general operations.
Dubal’s office was closed on Thursday for a public holiday so could not be reached for comment.
Dubal merged last year with Abu Dhabi’s Emirates Aluminium (Emal) to create Emirates Global Aluminium (EGA), the world’s fifth-largest aluminium company with an enterprise value of about $15 billion.
EGA is owned by Abu Dhabi state fund Mubadala and Investment Corporation of Dubai(ICD).-Reuters
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