Union National Bank (UNB) has announced a syndicated loan of Dh1.04 billion for Arkan Building Materials Company to finance a cement manufacturing complex in Al Ain.
UNB led six local and regional banks in signing the Dh1.04bn syndicated term loan facility. The signing ceremony was attended by Salem bin Mohammed Al Dhaheri, chairman of Arkan, Mohammed Nasr Abdeen, CEO of UNB and executives from the banks.
UNB acted as the mandated lead arranger, facility agent and security agent for this project finance deal. The six participating banks are First Gulf Bank, National Bank of Abu Dhabi, Arab African International Bank, Doha Bank, National Bank of Dubai and Commercial Bank International.
The factory is being constructed by China National Building Materials Company on a turnkey basis. The construction is expected to be completed by the end of 2009. It will have production capacity of 3.1 million tonnes per year of clinker and milling capacity of 4.5 million tonnes per year.
Abdeen said UNB's leading role in arranging the loan was in line with its objective and strategy of actively supporting the UAE's economic diversification.
Al Dhaheri said the project is very important for the UAE and the region as the real estate and construction sectors are contributing a vital share to the GDP.