Dh4bn Islamic finance deal for Emirates Steel

In the largest project finance deal in the UAE, Abu Dhabi Islamic Bank (Adib) led the Islamic tranche of the Dh4 billion project finance facility for Emirates Steel Industries.

Further, Adib anchored the facility with an Dh920 million funding, the largest participation.

Emirates Steel 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 has an output capacity of 2 million metric tonnes per annum, which is expected to reach 3 million metric tonnes 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".

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