Alba to begin process to issue bond in Q1 2016
Aluminium Bahrain (Alba), owner of one of the world’s largest smelters of the lightweight metal, will start the process for a potential bond sale in the first quarter of 2016, the company’s chief executive said on Wednesday.
In June, the state-backed company received government approval to raise its annual output by 514,000 tonnes to 1.45 million tones via a $3.5 billion plant expansion.
Sources had told Reuters Alba was considering various options to fund this expansion including loans, export credit agency finance and a capital markets transaction.
Alba hopes to issue a bond, CEO Tim Murray told a conference call to accompany its third-quarter results.
“I don’t think the (bond) offering will be in Q1 (2016) but in terms of getting the process going it will be in Q1,” said Murray.
He said he thought there was ample market liquidity for Alba to issue a bond, but declined to say how much the company was looking to raise.
“In terms of the (timing of the) actual issuance I’ll leave that to JP Morgan as our advisors,” said Murray.
In August, Alba said it would seek a credit rating ahead of talks to fund its expansion, but Murray revealed the company had yet to approach ratings agencies. (RTRS)