Al Khalij commercial Bank (Al Khaliji) Q.S.C and its subsidiary, Al Khaliji France S.A have announced their participation in a US$1.1bn, seven-year financing deal for Abu Dhabis Emirates Steel Industries (ESI).
The biggest steel plant in the UAE, Emirates Steel is a subsidiary of government-owned Abu Dhabi Basic Industries Corporation. In August 2010, a US$733mn facility from seven conventional banks and a US$367mn loan from two Islamic banks were raised to fund expansion of Emirates Steel's production facility and refinance existing debts.
"Emirates Steel is one of the largest regional finance deals in recent months," said Robin McCall, Al Khaliji Acting CEO. "We will always leverage opportunities to participate in project financing not only to contribute to our growth but also to support the growth of industries in markets where Al Khaliji is present."
Al Khaliji has substantially expanded its loan and debt capital markets capabilities over the past year to meet increased client demand and has increased its activity in selected markets such as the UAE, which not only add real value to the bank's growing portfolio, but also benefit individuals and businesses conducting cross border activities. Emirates Steel Industries is the latest large-scale project finance deal for Al Khaliji Corporate and Institutional Banking following its participation in the US$185mn Credit Facility for GMMOS Group.
Emirates Steel shared its expertise with an international audience of more than 500 delegates from 54 countries at a specialised iron and steel conference in Italy recently. The conference was hosted by Danieli, a leading company in the manufacture of steel plants, and focused on the latest developments in both long and flat products.
Highlighting the importance of the event, HE Hussain J. Al Nowais, Chairman of General Holding Company (GHC), Emirates Steel's parent company, said Emirates Steel has achieved its business goal to be an efficient and competitive producer of finished steel products.
Addressing the conference, Engineer Ahmed S. Al Dhaheri, Emirates Steel's Vice President of Projects, highlighted the various phases of Emirates Steel's development. "Following the completion of our Phase 1 expansion program, our company has developed an output capacity of two million MTPA from 650,000 MTPA in 2006," he said.
"On completion of Phase 2, our capacity will reach three million MTPA in 2011." He went on to explain that by the end of 2013, Emirates steel will reach a capacity of six million MTPA, making it one of the largest producers of steel in the Middle East region. "We will be among the few regional steel producers with a diversified product range," said Al Dhaheri.
