Emirates Islamic Bank and ABC Islamic Bank close US$70 million syndicated Murabaha financing facility for Esfahan Steel Company
Emirates Islamic Bank and ABC Islamic Bank (the “Arrangers”) have successfully closed syndication for a 3-year amortizing syndicated Murabaha financing facility with a total of $ 70 million for Esfahan Steel Company, Islamic Republic of Iran (“ESCO”).
The transaction has received strong support from the general syndication market and the Facility has been over-subscribed. The participants in the Facility include many of the leading regional Islamic and conventional institutions.
The signing ceremony was held in Bahrain on the 2nd of March 2006, and was attended by Mr. Behram Sobhani Chairman and Managing Director of Esfahan Steel Company, Mr. Mehrdad Choubineh Director of Financial Affairs of its Parent and Guarantor Iran Mines and Mining Industries Development and Renovation Organization (IMIDRO), Mr. Abdulla Showaiter GM- Corporate &Investment Banking of Emirates Islamic Bank and Mr. Abdulmegid Breish Chairman of ABC Islamic Bank and senior representatives of the participants.
Mr. Abdulla Showaiter, commented on Esfahan Steel Company’s position as a leading steel manufacturer in the Islamic Republic of Iran and the strong support received from the participants and said that Emirates Islamic Bank and ABC Islamic Bank – the Arrangers are delighted to have been given the opportunity to arrange this financing which will form the basis of a long standing partnership with Esfahan Steel Company and IMIDRO. Also he was delighted to have this prestigious group of banks wishing to establish new strategic relationships and firm the current relationships.
The 11-strong syndicate comprises the following financial institutions:
Emirates Islamic Bank PJSC, ABC Islamic Bank (E.C.), Commercial Bank of Qatar (Q.S.C.), Dubai Islamic Bank, Melli Bank plc, Bahrain Islamic Bank B.S.C, Amlak Finance PJSC, British Arab Commercial Bank Limited, Jordan International Bank plc, Banque Intercontinentale Arabe, The Arab Investment Company S.A.A.
ESCO is a leading steel producer in the Islamic Republic of Iran, and commenced production in 1971. It is a leading wholly owned subsidiary of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) which in turn is fully owned by the Ministry of Industries and Mines - Government of Islamic Republic of Iran.
Emirates Islamic Bank opened its doors in October 2004 with a mission to provide consumers in the UAE with effective and innovative Shari’a-compliant financial solutions and total peace of mind. EIB is headquartered in Dubai offering retail, corporate and investment services throughout the UAE. The bank is driven by a vision to be the leading Islamic bank in the country and to consistently develop new solutions to meet the ever-evolving needs of all its customers.
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