Emirates Global Aluminum (EGA), the largest industrial company in the UAE outside oil and gas, has fully repaid the project finance facilities which were extended by 13 export credit agencies and banks for the development of the company’s Al Taweelah smelter in Abu Dhabi.
The project financing was extended to Emirates Aluminum, now an EGA subsidiary, for phase 1 of the project in 2010 and then phase 2 in 2013, each with a tenor of 15 years. The $361 million repayment was made four and seven years early.
The early debt payment will significantly contribute to EGA’s capital structure optimization strategy. EGA’s financing has been reduced by over $1 billion in the last two years and now consists of a senior term loan facility of $5.5 billion, and EGA subsidiary Guinea Alumina Corporation’s (GAC) $700 million project finance facility which was secured in 2019.
Zouhir Regragui CFO – EGA
“This further deleveraging simplifies our debt structure and strengthens our balance sheet for the next stage in our corporate journey. We have been able to de-lever successfully in 2021 while generating returns for our shareholders due to the enduring strength of our business and robust demand for our metal.”
EGA spent over $3.9 billion procuring goods and services in 2020, with more than $1.7 billion spent in the UAE and the Republic of Guinea, where the company has operations. EGA aims to double its absolute contribution to the economy in the countries where it operates by 2040, partly through increasing strategic procurement and spurring the development of new supply industries.
