Bahrain's Alba signs $169m bank loan deals

Aluminium Bahrain enters into agreements to refinance bond due to expire in March 2013
Bahrain's Alba signs $169m bank loan deals
Aluminium
By Andy Sambidge
Thu 27 Dec 2012 04:27 PM

Aluminium Bahrain, also known as Alba, said on Thursday that it has entered into term loan agreements to refinance a $169m bond which is due to expire in March.

The term loans include a bilateral five-year loan of $85m with Gulf International Bank and a syndicated three-year loan of $84m with Ahli United Bank, National Bank of Bahrain, Tokyo-Mitsubishi UFJ Ltd, Arab Banking Corporation and Bank of Bahrain and Kuwait.

Alba, which owns the world's fourth-largest aluminium smelter, said earlier this month that it has hired Bechtel Canada to conduct the feasibility study for its proposed $2.5bn expansion plan to add a sixth production line.

Alba has said previously the new line - which will add 400,000 tonnes annual capacity to its current production of 881,000 tonnes a year - could be completed by early 2015.

The feasibility study will evaluate the economics of building Line 6 as well as a fifth power station at the site, a statement to Bahrain's stock exchange said.

The study is expected to be completed by the third quarter of 2013.

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