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Emirates Aluminium (EMAL) has signed financing agreements with three Export Credit Agencies to support the financing of the project. In doing so it has secured loan financing agreements for approximately $737m (Dhs2.7bn) for a term of up to 15 years.
Export-Import Bank of the United States (US Ex-Im), Euler Hermes Kreditversicherungs-AG (Hermes) and the Compagnie Fran aise d’Assurance pour le Commerce Ext rieur (COFACE) will provide financing support for the Taweelah-based smelter.
"These agreements speak to the strength of this project and the soundness of EMAL’s long term business plan," said Saeed Al Mazrooei, President and Chief Executive Officer of EMAL. "We would not have been able to achieve this without the teamwork and support provided by our employees, shareholders - Mubadala and DUBAL - and, of course, the UAE government." A direct loan agreement with US Ex-Im will provide the project with $317m (Dhs1.7bn) in funding; Hermes will provide cover for a $220m (Dhs800m) bank-funded term loan facility; and COFACE will provide cover for a $200m (Dhs734m) bank-funded term loan facility. Each facility has a door-to-door tenor of around 15 years and a repayment period of 14 years. This financing augments EMAL’s existing term loan financing completed in 2007.
"These agreements mark the realisation of a significant portion of our project financing plan, with relatively low cost funding secured over a long tenure, which in today’s market illustrates the strength of the EMAL project and the Sponsors as well as the projects importance to the industrialization strategy of the UAE" said Bill Campbell, EMAL’s Chief Financial Officer.
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