Abu Dhabi — Mubasher: Emirates Steel on Sunday announced that it has finalised a $400 million Murabaha facility deal.
The loan refinancing deal will enable Emirates Steel to speed up deleveraging, boost financial flexibility, simplify its debt structure and fund its growth schemes, the UAE’s only integrated steel plant said in a statement.
“The new financing replaces Emirates Steel’s outstanding secured debt with a corporate financing structure reflecting the established nature of the company. The loan facility has a tenure of four years and is structured as an unsecured amortising term loan,” Emirates Steel, which is a subsidiary of the General Holding Corporation (Senaat), added.
It noted that Senaat’s $300 million issue has strengthened the position and ability of Emirates Steel to close a loan refinance by obtaining preferential refinancing options based on a sharia-compliant financing instrument.
Emirates Steel noted that the fresh new loan facility will be used for general corporate purposes, including the refinancing of the company’s existing bank debt.
The facility was coordinated by BNP Paribas, while Abu Dhabi Islamic Bank acted as the Islamic Structuring Bank.
The lenders participating in the loan deal also comprised AB Svensk Exportkredit; Citibank N.A., First Abu Dhabi Bank (FAB); MUFG Bank Ltd., Union National Bank (UNB), BNP Paribas, and Abu Dhabi Islamic Bank PJSC (ADIB).
Commenting on the loan refinancing deal, CEO of Emirates Steel Saeed Ghumran Al Remeithi said, “The successful closing of this Murabaha agreement demonstrates Emirates Steel financial strength and stature among local and international financial markets. It is a testament to Emirates Steel's ability to secure its funding requirements on attractive terms.”
