| 06 Sep 2010 |
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ADIB leads the Islamic tranche of the AED 4.0 Billion project finance facility for the prestigious Emirates Steel Industries expansion project
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Abu Dhabi, 06 September 2010: In the largest project finance deal in the UAE, Abu Dhabi Islamic BankAbu Dhabi Islamic Bank
(ADIBADIB), a top-tier Islamic financial services group, led the Islamic Tranche of the AED 4.0 billion (US$1.1 billion) Project Finance Facility for Emirates Steel IndustriesEmirates Steel Industries, the UAE's leading steel maker. Further, ADIBADIB anchored the Facility with an AED 920 million funding, the largest participation. Emirates Steel IndustriesEmirates Steel Industries sought the facility to expand its steel production capacity and diversify its product offering as part of its strategic plan to become one of the largest integrated steel manufacturers in the region, in line with Abu Dhabi's vision 2030.ADIBADIB played a pivotal role in the Facility, acting as Islamic Arranger, and Islamic Documentation and Coordinating Bank, in addition to the Islamic Facility Agent.
Emirates Steel IndustriesEmirates Steel Industries has an output capacity of 2 million metric tons per annum, which is expected to reach 3 million metric tons in 2011 as part of its ambitious expansion plan.
Commenting on the agreement, Tirad Mahmoud, CEO of ADIBADIB said, "With this deal, ADIBADIB 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. There are various reasons this is a very important deal for the UAE, the key one being that it is for the expansion of a strategic project of national importance. It 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. This also shows ADIBADIB's unique capabilities to structure and arrange large and complex financing for major projects such as Emirates Steel IndustriesEmirates Steel Industries' expansion, with co-participation of Islamic and Conventional financiers to achieve an optimal outcome for the client"
"We were able to commit to the short deadlines due to confidence in our financial strength and our leading Islamic Corporate Finance and Investment Banking capabilities. The Islamic finance that we provided was customized to the needs of Emirates Steel IndustriesEmirates Steel Industries
and we will continue to support them as they grow within the UAE and beyond. Emirates SteelEmirates Steel is an important regional manufacturer and we are proud to be their major Shari'a compliant partner on this deal." added Tirad Mahmoud.Highlighting the key role played by ADIBADIB in structuring the deal, Stephen Pope, CFO of Emirates Steel IndustriesEmirates Steel Industries, said: "ADIBADIB impressed us with their innovation and flexibility in structuring this large financing agreement. They were initially chosen due to their robust financial strength, commitment and experience in customizing financing for many UAE companies. We are pleased to note that their efforts and capabilities, that involved structuring this complex agreement with eight other banks in a dual-tranche Islamic and Conventional Facility, have justified our confidence in them."
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About Emirates Steel IndustriesEmirates Steel Industries:
Emirates Steel IndustriesEmirates Steel Industries (ESI) is a subsidiary of the Abu Dhabi Basic Industries Corporation (ADBIC), wholly-owned by General Holding Corporation (GHC), an Abu Dhabi government-owned company. ESI was established in 1998 to satisfy the growing demand for quality steel products for the fast developing construction sector in the UAE, as well as to develop and operate an integrated steel plant in the Emirate of Abu Dhabi.
ESI is an integrated manufacturer of high quality steel products serving mainly the UAE market, and eyeing niche / value added products for exports (heavy and jumbo sections, drawing quality wire rods), with facilities located in Mussafah.
ESI is a strategic element of the Government of Abu Dhabi (GOAD) with a view to diversify the economy to accelerate the growth in non-oil based GDP.
:Abu Dhabi Islamic BankAbu Dhabi Islamic Bank
(ADIBADIB) was established on 20th May 1997 as a Public Joint Stock Company following the Emiri Decree No. 9 of 1997. The Bank commenced commercial operations on 11th November 1998, and was formally inaugurated by His Highness Sheikh Abdullah Bin Zayed Al Nahyan, on 18th April 1999. ADIBADIB's vision is to be a top-tier, global Islamic financial services group and its mission is to provide Islamic financial solutions to the global community.The Bank carries out all contracts, operations and transactions in accordance with Islamic Shari'a principles.
ADIBADIB's core values, reflected in all its activities are: Simple and Sensible; Transparent; Mutual Benefit; Hospitality and Tolerance; and Shari'a inspired. It brings to its customers banking as it should be.
For media information, please visit www.adib.ae or contact:
Grace Ghunaim
VP - Head of Corporate Communications
Abu Dhabi Islamic BankAbu Dhabi Islamic Bank
Tel: +971 2 610 0860
Mohammad Al-Qassem
Associate Account Manager
Weber Shandwick - MENA
Tel: +971 4 321 0077
© Press Release 2010
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