State-owned Emirates Global Aluminium (Ega), one of the largest aluminium firms in the world, has picked seven banks to raise a $4.9 billion loan to refinance debt taken on for some of its projects, sources aware of the matter told Reuters on Sunday.

EGA, created by the merger of two state-owned aluminium companies Dubai Aluminium (Dubal) and Abu Dhabi's Emirates Aluminium (Emal), is jointly owned by Abu Dhabi investment fund Mubadala and the state company which holds Dubai's most high-profile assets, Investment Corporation of Dubai (ICD).

The company has mandated BNP Paribas, Citi, Dubai Islamic Bank, Emirates NBD, ING, National Bank of Abu Dhabi and Natixis to arrange the loan.

Marketing to other banks is expected be start as early as this week, the sources said on condition of anonymity as the information is not public.

A spokeswoman for EGA said a statement would be released to the media in coming days. She made no further comment.

The company is seeking funds with a lifespan between 12 and 14 years to refinance loans taken for the Emal projects and is planning to consolidate existing debt into a single loan at improved costs, sources told Reuters last month.

Given the projects have been operational, they now have financial track records which banks can use to base their lending decisions against -- meaning the new debt should be priced at a much cheaper rate than the original project finance which had included risks relating to construction and getting the scheme up and running.

EGA produces 2.4 million tonnes of the metal per annum, which makes it among the top five largest primary aluminium producers in the world. It also owns Guinea Alumina Corporation, a bauxite mine and alumina refinery project in west Africa.-Reuters