| 07 Sep 2010 |
|
ADIB Loans Dh920 Million To Emirates Steel ADIB advances Dh920m to Emirates Steel
- Text size
Tuesday, Sep 07, 2010
Gulf News
Bank to play role in expansion project
Abu Dhabi The Abu Dhabi Islamic BankAbu Dhabi Islamic Bank
(ADIB) said yesterday it has funded Dh920 million in the $1.1-billion (Dh4.04 billion) project finance for the Emirates SteelEmirates Steel Industries’ expansion.
“With this deal, ADIB has acted on its mandate to contribute to the UAE’s growth and development by ensuring that the financing needs of UAE corporations and other entities are met,” Tirad Mahmoud, Chief Executive Officer of ADIB, said in a statement.
“It [the expansion project] will create additional employment opportunities and revenue sources for the UAE. In addition, this deal signals that the financing environment in Abu Dhabi is improving and could grow this year,” he added.
Mahmoud said the Islamic finance provided by ADIB was customised to the needs of Emirates Steel IndustriesEmirates Steel Industries
adding that the bank “will continue to support them as they grow within the UAE and beyond”. Janany Vamadeva, Banking Analyst with HC Securities, told Gulf News by telephone that the loan by ADIB to Emirates SteelEmirates Steel, an entity solidly backed by the financially strong Abu Dhabi government, is a good move.
Healthy growth
“This is an opportunity for the Abu Dhabi Islamic BankAbu Dhabi Islamic Bank for a healthy loan growth because the asset quality is quite good here. ADIB is adequately capitalised and its loan-to-deposit ratio is quite low, compared with other conventional banks,” Vamadeva added.
said last month it had raised $1.1 billion in project finance for the expansion of its steel manufacturing facility in Abu Dhabi. The company said at the time it had signed a seven-year project financing agreement with a consortium of seven conventional banks and two Islamic finance institutions.
Output capacity
The project finance debt was raised through a $367-million Islamic facility and a $733-million conventional facility, each of a seven-year tenure.
Emirates SteelEmirates Steel currently has an output capacity of 2 million metric tonnes per annum, which is expected to reach 3 million metric tonnes in 2011 through a Dh9 billion expansion plan.
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 Khaliji Commercial Bank. The two Islamic finance institutions are the Abu Dhabi Islamic BankAbu Dhabi Islamic Bank and Al Hilal Bank.
Natixis acted as financial adviser and Denton Wilde Sapte as legal counsel.
Emirates SteelEmirates Steel is a subsidiary of the Abu Dhabi Basic Industries Corporation (ADBIC), which is wholly-owned by General Holding Corporation (GHC), an Abu Dhabi government-owned company.
With this deal, ADIB has acted on its mandate to contribute to the UAE’s growth ... ensuring that the financing needs ... are met.”
Tirad Mahmoud
CEO, ADIB
By Himendra Mohan Kumar?Staff Reporter
© Gulf News 2010. All rights reserved.
Zawya is a distributor (and not a publisher) of content supplied by third parties and subscribers. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by those third parties, including information providers, subscribers or other users of the Service, are those of the respective author(s) or distributor(s) and not of the Company. The Company neither endorses nor is responsible for the accuracy or reliability of any opinion, advice or statement made on the Service by anyone other than authorized Service employee spokespersons while acting in their official capacities. The Company is not responsible for any infringement of intellectual property rights or breach of any applicable law or regulation, including regulation in relation to financial services or the distribution of financial products, defamation, data protection, telecommunications (including regulations relating to excessive use, spamming or other abusive activities) or obscene, offensive or illegal content). Under no circumstances will the Company be liable for any loss or damage caused by a member's reliance on information obtained through the Service. It is the responsibility of member to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content available through the Service. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
Read the full Member Agreement
http://www.zawya.com/legal/NewsLetter.cfm?name=disclaimer
More News in Islamic Finance
Loading ...
Post a Comment
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.