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.