New loan facility to support manufacturer’s growth and development
UAE’s Emirates Steel has finalized a significant loan refinancing deal that will enable the Company to accelerate deleveraging, increase financial flexibility, simplify its debt structure and fund its growth plans.
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 tenure of four years and is structured as an unsecured amortizing term loan.
The successful issuing of US$300 million by Senaat, which recently listed on the Abu Dhabi stock market as the first-of-its-kind dual listing between ADX and the London Stock Exchange, has strengthened the position and ability of Emirates Steel to complete a loan refinance by obtaining preferential refinancing options based on a Sharia compliant financing instrument.
The facility was coordinated by BNP Paribas, with Abu Dhabi Islamic Bank acting as the Islamic Structuring Bank and a consortium of leading regional and international banks.
“While Emirates Steel is more than capable of meeting its current financial obligations, in the context of its long-term financial strategy, it seeks to capitalize on the current market situation by taking advantage of available financing opportunities in order to obtain low interest rates,” said Eng. Saeed Ghumran Al Remeithi, CEO of Emirates Steel.
