Emirates Aluminium (Emal) is set for an oversubscription on the bank tranche of the financing for its $4.58bn second-phase expansion project.

Sources close to the project say pricing on the deal, set at 225 basis points above the London interbank offered rate (Libor), rising to 300 basis points, is attractive to both local and international banks.

The debt financing for the project is split between a $2.25bn commercial bank tranche, $500m from export credit agencies, and a $1.25bn bond issue. Banks are due to respond with financing offers for the commercial tranche by 28 September. If the response is strong then the size of the bond issue could be reduced in size.

The bank tranche could also include a dirham loan and an Islamic loan if there is enough liquidity from those sources.