UAE Islamic lender Al-Hilal has been appointed a term arranger and provided $117m for the Islamic tranche of the UAE’s Emirates Steel Industries’ (ESI) $1.1bn project finance deal.

The deal is comprised of a $733m limited-recourse facility from seven conventional banks and a $367m Ijara (lease) facility from two Islamic banks, of which Al-Hilal is providing $117m.

Funds will be used for the ESI’s expansion plans for additional manufacturing facilities. The steel company reported a 45.4 per cent increase in finished products for the first half of 2010 over the corresponding period in 2009.  

“We are delighted to play a significant part in the completion of the project finance deal,” says Mohammed Berro, chief executive of Al-Hilal.

“This deal is a continuation of an ongoing flow of deals we have participated in to provide institutions with Islamic financing solutions and to support various important sectors of the UAE’s economy.”

Al-Hilal is fully owned by the Abu Dhabi Investment Council, the investment authority of the Abu Dhabi government. The bank has an authorised capital of $1.08bn.

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