“Aluminium Bahrain B.S.C. (Alba), one of the world’s largest aluminium smelters, has reached the financial close for its Block 4 of Power Station 5 (PS5) that will add 680.9 megawatts (MW), which once completed will increase the nameplate capacity of PS5from 1.8GW to more than 2.4 GW”, as stated by the Chairman of Alba’s Board of Directors, Shaikh Daij Bin Salman Bin Daij Al Khalifa, in the virtual signing ceremony with Sinosure on Monday 14 November 2022.

The Chief Executive Officer Mr. Ali Al Baqali, the Chief Power Officer Mr. Amin Sultan, the Chief Financial Officer Mr. Bryan Harris joined the virtual ceremony along with senior representatives from SEPCOIII to include its Vice President Mr. Jie Li, senior officials from Sinosure Shandong including its President Mr. Wei Shaomin as well as senior officials from BNP Paribas China and BNP Paribas Middle East including the Head of Middle East and Africa Mr. Amine Bel Hadj Soulami.

Adding further, Alba’s Chairman of Board of Directors Shaikh Daij Bin Salman Bin Daij Al Khalifa stated:

“We are very pleased to have relied on Sinosure, for the first time in Alba’s history, to finance Block 4 of PS5 and we trust that this transaction will pave the way for future collaborations between Alba, SEPCOIII and Sinosure.

We are also thankful to receive the backing from our banking partners - BNP Paribas our Global Coordinator Bank as well as HSBC and Citibank the Main Lead Arrangers - in this ECA-supported facility.

One of our key initiatives under our ESG Roadmap, Block 4 will support the Company in its efforts to decarbonise in line with the Kingdom’s goals to reach Net Zero Emissions by 2060 and reduce its overall GHG emissions by 0.5x once completed in Q4 2024.”

The Chairman of SEPCOIII Mr. Wang Li stated:

“As an EPC contractor, Block 4 of PS5 is the second large-scale EPC project contracted by SEPCOIII in the Kingdom, we are honoured to witness this significant milestone of financial close, and will make every effort with our core competence and firm commitment to ensure the project to achieve all its goals, for Alba’s responsible and sustainable development, and for the Kingdom's social and economic development.”

Sinosure Shandong Branch stated:

“As the only official ECA institution in China, Sinosure support Chinese contractors, to finance for the sponsors by providing buyer’s credit insurance. The first time to cooperate with Alba is a best example. We’re very honored to cooperate with Alba. We also sincerely hope that Sinosure Shandong Branch can establish long-term contact and communications with Alba, and fully participate in the financing for Alba’s future projects, fulfill ESG duties, reduce carbon emissions, promote multi-field cooperation and make win-win achievements.”

The facility is made up of c. US$225 million China Export and Credit Insurance Corporation (“SINOSURE”) supported-facility with a 15-year tenor and a competitive interest rate wherein the principal amount will be repaid over a 15-year period including a 3-year grace period.

SEPCOIII along with Mitsubishi Power are responsible to design, engineer, procure, construct and commission the Combined Cycle Gas Turbine Power Block comprising M701JAC gas turbine, an air-cooled version of J-series gas turbines and a steam turbine.

-Ends-

About Aluminium Bahrain B.S.C. (Alba)

At plus-1.561 million metric tonnes per annum (2021), Alba is one of the world’s largest Aluminium smelters with more than 50 years of excellence in Operations, Safety, Environment and Socio-Economic Development.

A blue-chip asset of the Kingdom of Bahrain, Alba completed five decades of commercial operations in May 2021. The Company marked its Golden Jubilee by breaking all its previous records in Safety and topped 30 million Safe working-hours without Lost Time Injury (LTI) on 01 September 2022 for the first-time in its history.

Alba produces high-quality Aluminium products in the form of Standard and Value-Added Products (VAP)s, which are exported to more than 240 global customers through its sales offices in Europe (Zurich), Asia (Hong Kong & Singapore) and subsidiary office in the U.S. Alba is dual listed on Bahrain Bourse and London Stock Exchange and its shareholders are Bahrain Mumtalakat Holding Company B.S.C. © (69.38%), SABIC Industrial Investments Company (SIIC) (20.62%) and General Public (10%). Alba holds globally-recognised certifications such as ISO 9001, ISO 14001, ISO 27001, ISO 45001, IATF 16949:2016, ISO 22301:2012 Business Continuity Management System (BCMS) and ASI Performance Standard Certification and Ecovadis Certification.

As the first Aluminium smelter in the Middle East, Alba has been a major contributor to the social, industrial, and economic development of the Kingdom of Bahrain. Alba sits at the heart of a thriving Aluminium downstream sector in Bahrain, which accounts for approximately 12% of the Kingdom's GDP. As one of the biggest national companies, Alba has ensured not only the employment of Bahrain nationals (84% in 2021) but also the enhancement of their capabilities through education, training, and development initiatives at every stage of their career.

Alba is recognised as one of the top industrial companies in the world with high standards in Environment practices, Social contribution and Corporate Governance. Launched in February 2022, the Company’s ESG Roadmap outlines 6 priority areas - (1) Decarbonisation, (2) Green Energy & Aluminium, (3) Circular Economy & Secondary Aluminium, (4) Employee Welfare, (5) Collaboration & Partnership and (6) Transparency, Communications & Due Diligence. Since its inception, Alba has invested into numerous environment, sustainable and socio-economic development projects that have had a positive impact on the society. Alba’s recent projects such as the first-of-its-kind US$37.5 million zero-waste Spent Pot Lining Treatment Plant and the upcoming 5-7 MW Solar Farm Project are tangible efforts to meet the goals of Bahrain’s Economic Vision 2030 as well as the Net Zero Carbon targets led by HRH the Crown Prince and Prime Minister of Bahrain. Alba will play a crucial role in the upcoming Aluminium Downstream Park, which will increase the contribution of non-oil sectors to the GDP of Bahrain.

Alba’s motto ‘Safety First, Safety Always’ has ensured that the Safety and well-being of its employees and contractors’ workforce remain a top priority. The Company has been recognised internationally for its excellent Safety and Health track record with awards such as the RoSPA Gold Award (9 years in a row) and International Safety Award with Merit from British Safety Council, as well as six major National Safety Council (NSC) USA awards for 2021. Alba has also been recognised for its initiatives to produce Aluminium responsibly through awards such as Top ESG performer in Bahrain by ESG Invest, Safeguard Label from Bureau Veritas and Best Corporate Governance Award by Ethical Boardroom.

Alba Power Station 5 Block 4 Expansion Project

Alba Power Station 5 (PS5) Block 4 is a Combined Cycle Power Plant that is an expansion of the existing PS5.

PS5 Block 4 Project is the addition of a fourth Block of similar 1:1:1 configuration with J-class gas turbine technology and with minimum nominal ISO rating of a 680.9 MW and includes tie into the existing 220kV Substation. The efficiency of this combined cycle power plant is much higher than the combined cycle power plants of PS3 and PS4. On completion of PS5 Block 4 Expansion Project, the nameplate capacity of PS5 will increase from 1,800 MW to 2,481 MW.

Mitsubishi Power & SEPCOIII consortium will be responsible to design, engineer, procure, construct and commission Block 4. PS5 Block 4 commercial operations are expected to begin in Q4 2024.

Alba External Grievance Mechanism

Alba’s External Grievance Mechanism receives and facilitates the resolution of any affected communities’ concerns and grievances about Alba’s Environment and Social (E&S) performance. External grievances about Alba’s E&S performance can be logged via the Alba Integrity Line - an independently operated confidential reporting hotline in multiple languages - via a toll-free phone system or via the intranet 24 hours a day.

Alba Response to COVID-19 Pandemic 

Alba’s response strategy to COVID-19 was initiated back to January 2020 in line with the guidelines of Bahrain National Taskforce for Combating Coronavirus (COVID-19). The Company was able to maintain safe operations throughout 2021 thanks to its nimble workforce – employees and contractors’ personnel.

For further details, please contact:
Eline Hilal
Director, Investor Relations, Insurance & Corporate Secretary
Investor Relations Department
E-mail:   eline.hilal@alba.com.bh

Website: www.albasmelter.com

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