Sohar Aluminium US$600m seven-year loan refinancing


Sohar Aluminium has closed its US$600m seven-year loan refinancing with a pricing at 350bp and up to 450bp in the last two years, according to Reuters. Nine international regional and Omani banks entered the deal, including Mashreq and First Abu Dhabi Bank. The corporate-style loan takes out the US$1.46bn project financing from 2005 that was priced at 95bp. It had a balloon element so the new deal is a refinancing and a recapitalisation. The asset is owned by Oman Oil Company (OOC), Rio Tinto and Taqa. Verus Partners was the financial adviser with Latham & Watkins advising the sponsors and Allen & Overy for the lenders. The plant produces 390,000 tonnes per year and has a associated 800MW power plant. The refinancing has been in the works for some time. Plans for an expansion project at the plant are on hold.


PFI | April 2021