UNB announces AED 1.04 billion syndicated loan for Arkan Building Materials Company

UNB announces AED 1.04 billion syndicated loan for Arkan Building Materials Company
- Facility to fund construction of new cement factory in Al-Ain -
Union National Bank (UNB) led six local and regional banks in signing an AED 1.04 billion syndicated term loan facility for Arkan Building Materials Company PJSC, the leading building materials supplier in the region, to fund the construction of a new and fully integrated cement manufacturing complex in Al Ain.
The signing ceremony was attended by H.E. Salem Bin Mohammed Al Dhaheri, Chairman of Arkan, Mr. Mohammed Nasr Abdeen, CEO of UNB and senior executives from the participating banks.
UNB acted as the Mandated Lead Arranger, Facility Agent and Security Agent for this landmark 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 cement factory is being constructed by China National Building Materials Company on a turnkey basis. The construction is expected to be completed by end 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.
Mr. Mohammad Nasr Abdeen UNB CEO said UNB's leading role in arranging the loan facility was in line with the bank's objective and strategy of actively supporting the UAE's economic diversification.  "We are absolutely committed to support the UAE's industrialization process and are keen to providing finance assistance to projects that contribute to economic growth and diversification. We are delighted to support Arkan in their venture," he added.
Arkan Chairman H.E. Salem Bin Mohammed Al Dhaheri thanked UNB and participating banks for their support for the key venture.  "This project is very important for the UAE and the region at a time when real estate and construction sectors are contributing a vital share of our gross domestic product (GDP)," he said.
Arkan Building Materials Company P.J.S.C. ('Arkan') was established to own and develop companies and businesses involved in the construction-related sector in the UAE. Arkan is listed on the Abu Dhabi Securities Exchange (ADX) and has two subsidiaries: Emirates Cement Factory and Emirates Concrete Block Factories.