Dubal signs up more banks

02 August 2002

A further six local and international institutions have signed separate loan financing deals with Dubai Aluminium (Dubal) for the proposed Kestrel expansion project and related works. The new agreements, all for 10 years, bring the total amount of commercial funding Dubal has so far secured to $825 million (MEED 28:6:02).

The six new lenders are Citibank, HSBC Investment Bank, Mashreqbank, Credit Agricole Indosuez, National Bank of Abu Dhabi and Abu Dhabi Commercial Bank. They join Standard Chartered Bank, which announced in late June that it had agreed to lend $150 million. It is understood that Dubal is aiming to raise up to $1,100 million through a string of bilateral transactions priced at more than 50 basis points over Libor(MEED 5:7:02).

Dubal's Kestrel project will result in a 174,000-tonne-a-year (t/y) expansion of its Jebel Ali smelter, raising total capacity to 710,000 t/y (see page 17).

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