Abu Dhabi-based steel producer Emirates Steel has finalised a $400m Islamic loan facility that will be used to help refinance the company’s existing bank debt.

The loan facility has a tenure of four years and is structured as an unsecured amortising term loan. It replaces Emirates Steel’s outstanding secured debt with a corporate financing structure reflecting the established nature of the company.

The company says the loan will accelerate deleveraging, increase financial flexibility, simplify its debt structure and fund its growth plans.

The facility was coordinated by BNP Paribas, with Abu Dhabi Islamic Bank acting as the Islamic structuring bank. The lenders are AB Svensk Exportkredit; Citibank, First Abu Dhabi Bank; MUFG Bank; Union National Bank; BNP Paribas; and Abu Dhabi Islamic Bank.

Emirates Steel is a subsidiary of Abu Dhabi’s General Holding Corporation (Senaat), which successfully listed a $300m sukuk on 9 December.