MIRA INFORM REPORT

 

 

Report Date :

05.05.2014

 

IDENTIFICATION DETAILS

 

Name :

EMIRATES ALUMINIUM CO LTD PJSC (EMAL)

 

 

Registered Office :

Emal Smelter Complex, Al Taweelah, Khalifa Industrial Zone, P O Box 111023, Abu Dhabi

 

 

Country :

United Arab Emirates 

 

 

Date of Incorporation :

03.07.2007

 

 

Legal Form :

Private Joint Stock Company

 

 

Line of Business :

Subject is a state of the art aluminium smelter complex supplying the world with high quality metal.

 

 

No. of Employees

2,000

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

No Complaints 

 

 

Litigation :

Clear


 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

United Arab Emirates 

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

United Arab Emirates   ECONOMIC OVERVIEW

 

The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the country has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US; however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE's strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.

 

Source : CIA

 

 

 

SUMMARY

 

Company Name                                     : EMIRATES ALUMINIUM CO LTD PJSC (EMAL)

Country of Origin                                    : Abu Dhabi, United Arab Emirates

Legal Form                                            : Private Joint Stock Company - PJSC

Registration Date                                   : 3rd July 2007

Membership Number                              : 259973

Issued Capital                                        : UAE Dh 100,000,000

Paid up Capital                                      : UAE Dh 100,000,000

Total Workforce                                     : 2,000

Activities                                               : Subject owns and operates a smelter complex

Financial Condition                                 : Undetermined

Payments                                             : Nothing detrimental uncovered

 


COMPANY NAME

 

EMIRATES ALUMINIUM CO LTD PJSC (EMAL)

 

 

company ADDRESS

 

Registered & Physical Address

Location            : Emal Smelter Complex, Al Taweelah, Khalifa Industrial Zone

PO Box             : 111023

Town                 : Abu Dhabi

Country             : United Arab Emirates

Telephone         : (971-2) 5620666 / 5092222

Facsimile          : (971-2) 5627268 / 5627264 / 5093333

Email                : info@emal.ae

 

Premises

Subject operates from a suite of offices and an aluminium smelter that are owned and located in the Industrial Area of Abu Dhabi.

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

·       Khaldoon Khalifa Al Mubarak                                                              Chairman

·       Saeed Al Tayer                                                                                 Vice Chairman

·       Abdulla Kalban                                                                                  Director

·       Ahmed Yahia Al Idrissi                                                                      Director

·       Hilal Bin Dhaher                                                                                Director

·       Ibrahim Al Ansaari                                                                             Director

·       Maurizio La Noce                                                                              Director

·       Mohamed E Nagib                                                                             Director

·       Tim Breen                                                                                         Director

·       Geraldo Aguiar                                                                                  Director

·       Saeed Fadhel Al Mazrooei                                                                 Chief Executive Officer

·       Yousef Bastaki                                                                                 Projects Manager

·       Dilip Koshi                                                                                        Contracts Manager

·       Mohammed Sharaf                                                                            Chief Financial Officer

·       Salman Dawood Abdulla                                                                    Operations Manager

·       Walid Al Attar                                                                                   Sales Manager

·       Yousuf Bastaki                                                                                 Project Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 3rd July 2007

 

Legal Form                  : Private Joint Stock Company – PJSC

 

Membership No.          : 259973

 

Issued Capital              : UAE Dh 100,000,000

 

Paid up Capital            : UAE Dh 100,000,000

 

Name of Shareholder (s)                                         Percentage

·       Mubadala Development Company                               50%

Abu Dhabi

United Arab Emirates

Tel: (971-2) 6160099

Fax: (971-2) 6160098

 

·       Dubai Aluminium Company (Dubal)                             50%

Dubai

     United Arab Emirates

     Tel: (971-4) 8846666

     Fax: (971-4) 8846496

 

 

OPERATIONS

 

EMAL is a state of the art aluminium smelter complex supplying the world with high quality metal. The advanced smelter in Al Taweelah currently uses DX Reduction Cell Technology to produce 750,000 tonnes of aluminium annually.

 

This will increase to 1.3 metric million tonnes by the end of 2014 upon completion of Phase II and the installation of the new generation DX+ Reduction Technology, making it the largest single site smelter in the world. Approval of a $4.5bn investment for Phase II, combined with the original $5.7bn Phase I joint venture between Dubai Aluminium and Mubadala Investment Company, makes EMAL one of the largest industrial projects in the UAE outside of the oil and gas sector and one of the key projects leading the diversification of the UAE’s economy.

 

EMAL currently supplies 150 customers in 36 countries with high quality aluminium which is available as sow, standard ingots, sheet ingots and extrusion billets.

 

The site currently includes a 2000 MW power plant, which will increase to 3,000MW by 2014, carbon plant and flexible casthouse with a wide variety of world class products. A purpose-built wharf at Khalifa Port shortens the supply chain of raw materials direct from sea to smelter.

 


Financing Source

On 16 December 2007, EMAL announced that it has closed its USD4.9 billion limited recourse bank financing for its first phase construction.

 

EMAL received over USD15 billion of commitments for the facilities, which consist of a USD1.8 billion, sixteen year term loan, a USD270 million letter of credit facility and a USD2.8 billion six year equity bridge loan.


Further financing for EMAL of up to USD2 billion is expected to be launched into the credit markets during the construction of the smelter, bringing the total financing to almost USD7 billion.

The investment is being arranged by a syndicate of international and regional banks led by Abu Dhabi Commercial Bank, BNP Paribas, Calyon, Royal Bank of Scotland, Standard Chartered, Sumitomo Mitsui Banking Corporation, Citigroup, Emirates Bank International, Export Development Canada, Export Finance and Insurance Corporation, Goldman Sachs Credit Partners, Mashreqbank and National Bank of Abu Dhabi.

 

EMAL was advised by Citigroup and Sullivan and Cromwell LLP

 

 

FINANCIAL DATA

 

Companies registered in Dubai, United Arab Emirates are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       Abu Dhabi Commercial Bank

Abu Dhabi Commercial Bank Building

Al Salam Street

PO Box: 939

Abu Dhabi

Tel: (971-2) 6962222 / 6962222

Fax: (971-2) 6776499 / 6776499

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.23

UK Pound

1

Rs.101.68

Euro

1

Rs.83.46

                

INFORMATION DETAILS

 

Report Prepared by :

NNA

               

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.