Abu Dhabi: Emirates Steel, the largest integrated steel producer in the UAE and a strategic steel player in the Middle East, and its ultimate parent company, General Holding Corporation (GHC), are on track to complete the financing plan associated with Emirates Steel's expansion projects.
On July 1, financial closure was achieved on a $500 million (Dh1.8 billion) export credit facility raised by GHC on a corporate basis and insured by SACE, an Italian group that operates in the field of export credit, credit insurance, investment protection, financial guarantees, sureties and factoring.
According to GHC's Director General, Suhail M. Al Ameri, the SACE facility attracted very strong interest from the international bank market.
"The extent of proposals received resulted in the SACE facility being some four times oversubscribed on very favourable terms," he said.
In parallel, Emirates Steel has secured project finance and working capital commitments from both conventional and Islamic institutions for facilities totalling $1.7 billion.
Al Ameri commented that the proposals received significantly exceeded the total financing requirement of the company with the transaction nearly 100 per cent oversubscribed.
