Emirates Aluminium plans $2b bond sale
Emirates Aluminium Co., the venture building the world’s biggest aluminum smelter in Abu Dhabi, plans to sell about $2 billion of bonds next year to help finance construction, two people familiar with the company said.
Some of the bonds, with maturities of about 10 years, may be sold as Islamic securities known as sukuk to help boost local investor demand, said the people, who asked not to be identified as the plan is private. They said Citigroup Inc., Goldman Sachs Group Inc. and National Bank of Abu Dhabi PJSC will manage the sale.
Emirates Aluminium last week agreed to $4.94 billion of loans with banks led by BNP Paribas SA, Calyon, Royal Bank of Scotland Group Plc and Standard Chartered Plc, data compiled by Bloomberg show. The debt includes a six-year so-called equity bridge of $2.8 billion and a $1.87 billion 16-year term loan.
Mubadala Development Co., an investment arm of Abu Dhabi’s government, started Emirates Aluminium with state-owned Dubai Aluminium Co. last year to take advantage of cheap local power and surging global demand for aluminum, used to make beverage cans and airplanes. Source