Alba refinances its existing syndicated loan of US$1.247 billion tied to sustainability-related objectives

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Aluminum Bahrain BSC (Alba), the world’s largest smelter outside China, is the first Bahraini company to successfully secure sustainable refinancing for its USD 1,247,475,000 syndicated loan facility under the expansion project of line 6.

The USD 1,247,475,000 senior unsecured conventional and Islamic facility carries an interest margin of 235 basis points per annum on the sum of the secured overnight funding rate (SOFR) and the credit spread. credit adjustment (CAS). This new facility has an 8-year term and the principal amount will be repaid in 16 semi-annual installments. The margin is subject to adjustment (up or down) on an annual basis by an aggregate amount of up to 2.5 basis points related to three sustainability-related KPIs: Total recycled waste (solid waste), training hours and lost time injuries. Number of frequency incidents. This facility is comprised of two tranches: a US dollar denominated senior unsecured conventional term loan facility (the Conventional Facility) of $537,475,000 and a US dollar denominated senior Sharia compliant credit facility (the Islamic Facility) of USD 710,000,000.

Arab Banking Corporation BSC (Bank ABC), Gulf International Bank BSC (GIB) and National Bank of Bahrain BSC (NBB) were the coordinators and underwriters of this transaction with NBB and Standard Chartered Bank serving as environmental, social and governance (ESG). Coordinators.

Commenting on the occasion, Alba Board Chairman Shaikh Daij bin Salman bin Daij Al Khalifa said:

“The oversubscription in the refinancing of our existing syndicated loan facility by 3 times is a vote of confidence in Alba, its fundamentals as well as the Kingdom of Bahrain. We are also pleased with the favorable terms of the new syndicated loan facility as we have reduced the interest margin from 300 basis points above LIBOR to 235 basis points above SOFR and CAS Locking in these new terms will allow us to invest in our future growth initiatives while giving back to our shareholders.

Being the first company in Bahrain to tie refinancing to sustainability-related goals shows our strong commitment to ESG and will be a catalyst to strengthen Alba’s sustainability performance as we work collectively to achieve the Bahrain’s zero carbon targets by 2060.

I also take this opportunity to thank the coordinators and underwriters for going above and beyond to complete the refinancing with my management team in Alba.

Bank ABC Group Chief Executive Dr Khaled Kawan said:

“Bank ABC is honored to have been commissioned by Alba to act as coordinator, IMLAB and underwriter for their first sustainability-related term facility. This high-profile transaction illustrates our role as a catalyst in accelerating the environmental transition in our own domestic market.

We are leveraging the power of our size and capital markets to mobilize the financing Alba needs to address these global challenges and opportunities. The positive response this facility has received in terms of oversubscription, pricing, number and diversity of attendees is indeed testament to Alba’s outstanding credentials and confidence in Bahrain’s economy.

GIB Managing Director Jamal Al Kishi said:

“We are delighted to have had the opportunity to support Alba in this historic refinancing, which underlines the Company’s commitment to sustainable development and growth. Investors who took up the offer indeed expressed a strong vote of confidence in Alba and its future, and just as importantly highlighted the strong appetite they have for ESG-related exposures. GIB itself recently became the first Bahrain-based bank and the first majority Saudi-owned bank to issue a durably linked syndicated loan. Helping our customers in the region with solutions aimed at achieving world-class sustainability goals is one of our primary goals. »

“The National Bank of Bahrain is delighted to have been appointed Joint Sustainability Coordinator, Lead Arranger of the Initial Mandate and Bookrunner for Alba’s Sustainability Linked Term Facility. We are also delighted to see that the transaction has achieved all of the objectives set by Alba at the start of the term and, at the same time, has attracted substantial oversubscription from a wide range of lenders. The fact that this financing associates Alba and NBB, respectively the first and second companies of the Bahrain Stock Exchange in terms of ESG (according to the rating agency ESG Invest) testifies to the dynamic of sustainable development within the Kingdom. As a national facilitator, we are proud to be part of advancing the Kingdom’s Economic Vision 2030,” said Hisham Al Kurdi, Managing Director – Corporate Institutional & Investment Banking at National Bank of Bahrain.

The new syndication was oversubscribed by US$2.6 billion and includes 21 banks.

-Ends-

About Aluminum Bahrain BSC (Alba)

Symbol: ALBH]

Beginning as a 120,000 tonnes per year smelter in 1971, Alba is today the largest aluminum smelter in the world outside of China with production of over 1.561 million metric tonnes per year (2021). Its diversified product portfolio of standard and value-added (VAP) products is exported to more than 240 global customers through its sales offices in Europe (Zurich), Asia (Hong Kong and Singapore) and its subsidiary in the United States. on the Bahrain Stock Exchange and the London Stock Exchange and its shareholders are Bahrain Mumtalakat Holding Company BSC© (69.38%), SABIC Industrial Investments Company (SIIC) (20.62%) and General Public (10%).

Over the past five decades, Alba has been a major contributor to the social, industrial and economic development of the Kingdom of Bahrain. The company is at the heart of a thriving aluminum sector in Bahrain, which accounts for around 12% of the country’s GDP. Renowned as an employer of choice, Alba is a model in employee training and development and employs over 3,100 people across its operations (2021), 84% of whom are Bahraini nationals. It should be noted that in 2021, Alba completed over 581,000 hours of training despite the challenges of COVID-19.

Alba is recognized as one of the best industrial companies in the world with high standards in terms of Eenvironmental practices, Ssocial and corporate contribution ggovernance. For 50 years, the Company has invested in projects that have a positive impact on the society in which it operates. More recently, the Alba zero-waste spent pot lining processing plant, worth US$37.5 million, the next solar farm project of more than 5 MW and the strategic role in the future park downstream of aluminum are testament to Alba’s sustainable development roadmap that will meet the objectives of Bahrain’s economic vision. 2030 as well as the Net Zero Carbon goals led by HRH the Crown Prince and Prime Minister of Bahrain at the COP26 summit. In addition, globally recognized certifications such as ISO 9001, ISO 14001, ISO 27001, ISO 45001, IATF 16949:2016 and ASI Performance Standard Certification and Ecovadis attest to Alba’s actions to produce aluminum in a responsible and sustainable way.

The safety of its employees and the workforce of its contractors remains Alba’s top priority. Over the years, the company has maintained an excellent safety and health track record for which it has won prestigious international awards such as the RoSPA Gold Award (9 consecutive years) and the International Safety Award with Merit from the British Safety Council in 2020. Alba has remained strong on its journey of safety excellence by exceeding more than 25 million hours of safe working without a single Lost Time Injury (LTI) by XX 2022 .

Alba has also been recognized internationally for its strong values ​​and operational excellence, the most recent being Best ESG Performance in Bahrain by ESG Invest; Bureau Veritas safeguard label; and Best Corporate Governance Award by Ethical Boardroom. For more information on Alba, please visit www.albasmelter.com

Alba’s external grievance mechanism

Alba’s external grievance mechanism receives and facilitates the resolution of concerns and grievances from affected communities regarding Alba’s environmental and social (E&S) performance. External complaints about Alba’s E&S performance can be registered through the Alba Integrity line – a confidential and independent multilingual hotline – via a toll-free telephone system or via the 24-hour intranet.

Alba’s response to the COVID-19 pandemic

Alba’s COVID-19 Response Strategy was launched in January 2020 following the guidelines of the Bahrain National Task Force for Coronavirus (COVID-19) Response. The Company was able to maintain safe operations throughout 2021 thanks to its agile workforce – employees and contractor staff.

LINE 6 EXTENSION PROJECT MILESTONES

ELECTRICAL EXTENSION PROJECT – 2018

33KV substation energized May 30

Powering up of the 220 KV substation September 30

Alba Gas Station Discount October 15

Energizing the rectifier October 25

First gas turbine fire – Unit 1 October 30

Complete Rectifier Short Circuit Test Nov 03

ELECTRICAL EXTENSION PROJECT – 2019

Date of commercial exploitation 1 August 25

Date of commercial exploitation 2 October 26

FOUNDRY LINE 6 – 2018

First cathodic sealing operation January 31

Delivery of the first 36 pots of Potroom F to operations November 25

Delivery of the first 36 pots of Potroom F to operations November 25

Beginning of the short-circuit test November 26

Begin drying of the anode baking furnace November 28

First dynamization of the pot December 13

First green anode December 15

First cold charge of Furnace 3 in Foundry 4 December 26

FOUNDRY LINE 6 – 2019

Successful test of 40 pots February 16

Start of operations of 106 pots March 26

Start of operations for 106 additional pots April 18

Start of short-circuit test (south 212 pots) May 31

Safe start of the last pot (#424) July 21

Last Hot Metal July 31

For more details, please contact:
Eline Hilal
Director, Investor Relations, Insurance and Corporate Secretary
Investor Relations Department
Email: [email protected]
Website: www.albasmelter.com

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