Emal bond delayed until next year

24 October 2012

UAE aluminium scheme now aiming for financial close in 2013

Emirates Aluminium has delayed until next year a plan to issue a bond of about $1.25bn to finance the development of the second phase of its Taweelah smelter project.

The company, a joint venture of Dubai Aluminium (Dubal) and Abu Dhabi’s Mubadala, had hoped to issue the bond in November and complete the wider $4.58bn phase two financing before the end of the year.

But regulatory issues around Mubadala’s accounting periods meant that the bond would have to be done by 15 November. “The November window has been missed,” says one source close to the project. “The bond will now not happen until next year.”

“The aim was to do the bond in early November, but that is no longer possible,” says another source.

Lenders on the $2.25bn commercial bank tranche of the deal have until 24 October to sign commitment letters. Once this is complete, lead arrangers for the bond issue will be appointed. This is not expected until early November, leaving too short a time to get the bond issue bond completed.

Sources close to the deal say that the two sponsors remain committed to moving forward with the financing as quickly as possible. Financial close on the deal is now expected to occur in the early part of 2013.

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