Abu Dhabi Islamic Bank (ADIB) has arranged a AED4bn ($1.1bn) Islamic finance facility for the UAE’s Emirates Steel Industries (ESI) to help fund its expansion.
ADIB also anchored the facility with an AED920m funding, comprising the largest participation.
ESI currently has the largest steel plant in the UAE, which produces reinforcing bars for the construction industry.
It is going to use the new funding to expand its production capacity and diversify its product offering as part of its strategy to become one of the largest integrated steel manufacturers in the region, said an ADIB statement published on 6 September.
The steel giant currently has an output capacity of 2 million metric tons per year and is expected to reach 3 million metric tons in 2011.
ESI reported a 45.4 per cent increase in its output of finished products for the first half of 2010, compared with the corresponding period in 2009.