al hilal bank term arranger in Emirates Steel US$1.1bn project finance deal
al hilal bank, the UAE's Islamic bank, announced that it has been appointed as an Islamic Term Arranger for the Emirates Steel Industries PJSC's Islamic Tranche of its $1.1 billion Project Financing deal.
The financing deal comprised of a $733 million limited-recourse facility from seven conventional banks and a $367 million Ijara (lease) facility from two Islamic banks, al hilal bank's participation in the deal is of USD 117 Million. Funds will be utilised to finance ESI's capital expenditures for its expansion plans for additional manufacturing facilities
Commenting on the subject, Mr Mohammed Jamil Berro, CEO, al hilal bank, said: "We are delighted to play a significant part in the completion of the project finance deal. This deal is a continuation of an ongoing flow of deals al hilal bank has participated in to provide institutions with Islamic financing solutions and to support various important sectors of the UAE's economy".
"This transaction also comes in line with al hilal's commitment to Abu Dhabi's vision 2030 and supporting the Emirate's strategic and vital business initiatives".
Stephen Pope, Chief Financial Officer of ESI, commented "We are delighted to have al hilal as one of our lending group. Having both an Islamic and a Conventional tranche the deal structure was complex; in this context we were very pleased with the professionalism and support received from the al hilal team to help us close the deal."
Established In September 2006, Emirates Steel Industries is100% owned by General Holding Corporation.
- The cost of delivery: how to financially prepare yourself for having a baby
- Istanbul Tower: a cruel reminder of what could have been...for Greece
- An unfathomable figure: GCC banking assets set to hit $2 trillion by 2015
- Too much of a good thing? Why IPO's can result in an overly stoked UAE stock market
- Diversifying to Africa: Gulf countries to pump $30 billion into the continent
- Emirates Steel signs US$ 1.1 billion project financing agreement
- ADIB leads Islamic tranche of the AED 4.0 Billion project finance facility for Emirates Steel Industries expansion project
- Etihad Airways’ USD 110 million new Airbus aircraft, financed by Al Hilal Bank, lands in Abu Dhabi
- Etihad secures US $210 million aircraft financing
- Record Islamic finance deal agreed in Turkey