Bahrain's Alba secures $700m finance for Line 6by Neha Bhatia on Apr 17, 2017
Aluminium Bahrain (Alba) announced it has secured commitments worth $700m (BHD263.8m) from facilities supported by Export Credit Agency (ECA) to finance its Line 6 Expansion Project.
The facilities comprise a dual tranche of $310m (BHD116.8m) and $334.4m (€315m; BHD126.1m) SERV Guaranteed Export Credit, and $53.1m (€50m; BHD20m) Euler Herms Guaranteed Export Credit.
The SERV-backed facility will fund Alba’s Power Station 5 (PS5) under which, engineering, procurement, and construction (EPC) contractor General Electric (GE) will provide three 9HA Gas Turbine units, three steam turbines, and three heat recovery steam generators (HRSGs).
This facility spans a 15-year tenure, and the principal amount will be repaid over a 12-year period.
Meanwhile, the Hermes-backed facility will finance the Power Distribution System (PDS), for which Siemens will construct and commission a high-voltage electrical network and provide gas insulated switchgear (GIS) of up to 220kV.
This facility will have a 14-year tenure, and the principal amount will be repaid over 12-year period.
JPMorgan Chase Bank is acting as the ECA coordinator to assist Alba in arranging the facilities.
Remarking on the development, Alba's chairman of board of directors, Shaikh Daij bin Salman bin Daij Al Khalifa, said: "Securing the export credit financing for PS5 and PDS is a strong vote of confidence in Line 6 Expansion Project.
"We look forward to [working] with the Swiss and German governments, as well as with GE and Siemens, to progress with Line 6 as per schedule."
The Line 6 Expansion project, expected to start metal production in early 2019, will increase the line's annual production by 540,000 metric tonnes upon its full ramp-up.
The project will raise Alba’s total production capacity to 1,500,000 metric tonnes per annum, BNA reported.