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Alba closes $1.5bn syndicated loan

Alba closes $1.5bn syndicated loan
Alba decided to upsize the loan to $1.5 billion, making it the largest corporate loan in the history of Bahrain -
Alba
ALBH
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Mubasher: Aluminium Bahrain (Alba) announced on Sunday the successful closing for its landmark syndicated term-loan facility, the first tranche of the company’s funding plan for the Line 6 Project.

Alba’s original target for the syndicated loan was to raise between $500 million and $750 million, but due to heavy over subscription, Alba decided to upsize the loan to $1.5 billion making it the largest corporate loan in the history of Bahrain, the company said in a bourse filing.

The $1.5 billion carries an interest margin of 325 basis point per annum over the London Interbank Offered Rate (LIBOR), with a 3-year grace period on principal payments to support the Line 6 construction period.

This facility comprises two tranches, a US Dollar-denominated senior unsecured conventional term-loan facility of $882 million and a US Dollar-denominated senior Shari’ah-compliant facility of $618 million.