DUBAI, Oct 16 (Reuters) - Aluminium Bahrain (Alba) said on Sunday it closed a $1.5 billion loan with regional and international banks that will fund its Line 6 expansion project.
Alba will become the world’s largest single aluminium smelter complex, boosting its annual output by 540,000 tonnes to 1.5 million tonnes per year by adding a sixth “potline”, used in producing the metal from raw materials such as bauxite.
The loan has a lifespan of seven years, although repayments will start after three years to allow for construction work to take place, and carries pricing of 325 basis points over the London Interbank Offered Rate (Libor), according to a bourse statement.
The loan is split between a $882 million senior unsecured conventional facility and a senior sharia-compliant facility worth $618 million, it added. (Reporting by Hadeel Al Sayegh; Editing by David French)