Global Arab Network | Abu Dhabi Islamic Bank leads share of $ 1.1 billion project finance for UAE Steel

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Abu Dhabi Islamic Bank leads share of $ 1.1 billion project finance for UAE Steel

Monday, 06 September 2010 20:59

UAE (Abu Dhabi) - In the largest project finance deal in the UAE, Abu Dhabi Islamic Bank (ADIB), led the Islamic Tranche of the AED 4.0 billion (US$1.1 billion) Project Finance Facility for Emirates Steel Industries.

Further, ADIB anchored the Facility with an AED 920 million funding, the largest participation. Emirates Steel Industries sought the facility to expand its steel production capacity and diversify its product offering as part of its strategic plan to become one of the largest integrated steel manufacturers in the region, in line with Abu Dhabi's vision 2030.

ADIB played a pivotal role in the Facility, acting as Islamic Arranger, and Islamic Documentation and Coordinating Bank, in addition to the Islamic Facility Agent.

Emirates Steel Industries has an output capacity of 2 million metric tons per annum, which is expected to reach 3 million metric tons in 2011 as part of its ambitious expansion plan.

Commenting on the agreement, Tirad Mahmoud, CEO of ADIB said, "With this deal, ADIB has acted on its mandate to contribute to the UAE's growth and development by ensuring that the financing needs of UAE corporations and other entities are met. There are various reasons this is a very important deal for the UAE, the key one being that it is for the expansion of a strategic project of national importance. It will create additional employment opportunities and revenue sources for the UAE".

Highlighting the key role played by ADIB in structuring the deal, Stephen Pope, CFO of Emirates Steel Industries, said: "ADIB impressed us with their innovation and flexibility in structuring this large financing agreement. They were initially chosen due to their robust financial strength, commitment and experience in customizing financing for many UAE companies. We are pleased to note that their efforts and capabilities, that involved structuring this complex agreement with eight other banks in a dual-tranche Islamic and Conventional Facility, have justified our confidence in them."

Global Arab Network

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