Emal shortlists advisers for second phase of Abu Dhabi smelter

11 March 2010

Emal to double capacity of smelter at the Khalifa Port & Industrial Zone at Taweelah

UAE-based Emirates Aluminium (Emal) has received responses from six banks interested in acting as adviser on the second phase expansion of its smelter at Taweelah.

The expansion project is expected to cost about $5bn and it involves doubling the production capacity of the Emal smelter at the Khalifa Port & Industrial Zone at Taweelah. Once phase two is completed, the smelter will have capacity of 1.5 million tonnes a year.

Taweelah Smelter phase 1 financing
Financing typeAmount ($bn)Tenor
Loan1.816 years
Equity bridge loan2.86 years
Letter of credit0.27unknown
Source: MEED  

Emal, a joint venture between Abu Dhabi’s Mubadala Development Company and Dubai Aluminium Company (Dubal), sent out invitations to banks in early February, and asked potential advisers to respond by 24 February.

In the initial documentation sent to banks inviting them to pitch as adviser on the $5bn expansion to the Emal plant, potential candidates were asked to respond by 24 February (MEED 09:02:10).

Several banks approached have decided not to pitch for the mandate. The sponsors are aiming to have the financing for phase two in place by September 2011.

The six banks shortlisted were all involved in financing the $4.9bn first phase of the project, which secured funding in December 2007. Citigroup also acted as financial adviser on phase one, and is still trying to put together the $2bn of funding for the project after the financial crisis led Emal to drop plans for a bond issue in early 2008.

Emal is currently in talks with several export credit agencies about securing a loan of $700m (MEED 21:02:10).

The six banks pitching to advise on Emal phase two are:

  • BNP Paribas (France)
  • Credit Agricole (France)
  • Societe Generale (France)
  • Royal Bank of Scotland
  • Citigroup (US)
  • Deutsche Bank (Germany)

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