Emirates Steel has completed the long term financing for the development of its Abu Dhabi-based steel plant.

The $1.1bn financing is split between a $367m Islamic loan provided by Abu Dhabi Islamic Bank and Al-Hilal, and a $733m loan from a group of banks consisting of the UAE’s National Bank of Abu Dhabi, Union National Bank, First Gulf Bank, India’s Bank of Baroda, Bahrain’s Arab Banking Corporation, and Qatar’s Al-Khalij Commercial Bank and its subsidiary Al-Khaliji France.

France’s Natixis acted as financial adviser on the deal. Both the Islamic and the conventional loan had a tenor of five years.

In addition to the project finance deals, Emirates Steel’s owner General Holding Company raised a $500m loan, which was backed by Italian export credit agency Sace.

The proceeds from the deal will fund the expansion of the Emirates Steel’s production facilities and refinance a $700m loan that matured in August.