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Abu Dhabi, UAEFriday 14 December 2018

EGA mulls options to tap debt amid favourable financing conditions

The company said in September it was delaying its 2018 IPO

EGA is expanding its operations in the UAE and abroad, with projects aimed at securing all segments of the value chain, from a $1.4 billion bauxite mine in Guinea to setting up a $3.3bn alumina refinery in Abu Dhabi Courtesy EGA.
EGA is expanding its operations in the UAE and abroad, with projects aimed at securing all segments of the value chain, from a $1.4 billion bauxite mine in Guinea to setting up a $3.3bn alumina refinery in Abu Dhabi Courtesy EGA.

Emirates Global Aluminium, the UAE’s biggest industrial company outside the oil and gas sector, is mulling options to tap the international debt markets amid favourable financing conditions.

“We can confirm that EGA is working with some of our core relationship banks to identify any opportunities to benefit from the current debt market liquidity to optimise our corporate debt position,” the company said in a statement to The National on Tuesday. “Whilst no decision has yet been made to proceed with this, we believe demand for debt from quality assets such as EGA currently exceeds supply amid high levels of liquidity in the regional banking sector.”

EGA is looking to potentially refinance up to $6.7 billion of its debt, Reuters reported.

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Read more:

Emirates Global Aluminium delays IPO due to market conditions

EGA-owned Guinean bauxite mine at 50 per cent completion

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In September, EGA delayed its initial public offering that was slated for this year due to unfavourable market conditions. Uncertainty regarding Brexit, a crisis in Italy and and escalating trade war rhetoric between the US and China have rattled markets.

Abu Dhabi strategic firm Mubadala Investment Company is part owner of EGA alongside the Investment Corporation of Dubai, the emirate’s sovereign wealth fund.

EGA, among the world's five largest aluminium producers, is expanding its operations in the UAE and abroad. The company has projects aimed at securing all segments of the value chain, from a $1.4 billion bauxite mine in Guinea to setting up a $3.3bn alumina refinery in Abu Dhabi, both of which will come on stream in 2019.

The Guinea facility is expected to produce around 12 million tonnes of bauxite, which is used to produce alumina and is then converted into aluminium.

EGA currently imports all the alumina it uses in aluminium production, but last year it signed a three-year alumina supply agreement with Vietnamese miner Vinacomin.