EMIRATES Steel has signed a seven-year project financing agreement with a consortium of seven conventional banks and two Islamic finance institutions worth $1.1 billion.

The project finance debt was raised through a $367-million Islamic facility and a $733-million conventional facility, each of a seven-year tenor. The conventional banks consortium consists of the National Bank of Abu Dhabi, Union National Bank, First Gulf Bank, Bank of Baroda, Arab Banking Corporation, Al Khaliji France and Al Khalij Commercial Bank (Al Khaliji). The two Islamic finance institutions are the Abu Dhabi Islamic Bank and Al Hilal Bank. Natixis has acted as financial advisor and Denton Wilde Sapte as legal counsel on this transaction.

Emirates Steel, the largest integrated steel producer in the UAE, is a subsidiary of the Abu Dhabi Basic Industries Corporation, which is wholly-owned by General Holding Corporation, an Abu Dhabi government-owned company.