Loan for UAE's largest steel manufacturer wins Project Finance Magazine's Middle East Islamic Finance Deal of the Year a progressive UAE based Islamic bank has allocated AED 430 million as part of a major AED 4.77 billion dual tranche Islamic and conventional financing deal covering Emirates Steel Industries.

The Ijarah structured loan will partially fund Emirates Steel's plant expansion project and partly repay the steel producer's AED 2.6 billion multicurrency bridge loan facility. The deal showcases Al Hilal BankAl Hilal Bank's ability to facilitate innovative and flexible Shari'a compliant financing as it involved cash sweeps, deferrals and inter creditor agreements. The Islamic tranche was closed in just eight weeks against a backdrop of volatile steel prices and tight bank liquidity, with more than 2x oversubscription on the commercial debt and 4x on the Islamic facility.

The financing agreement was awarded the Middle East Islamic Finance Deal of the Year 2010 by Project Finance Magazine.

Mr Sarie Asaad Ahmed Arar executive VP of Wholesale Banking, Al Hilal BankAl Hilal Bank said that "The financing scheme for Emirates Steel was our top Islamic banking deal for 2010. It earned us a lot of respect for our ability to engage big industry players in major contracts and also provided an opportunity for us to showcase our Islamic financing capabilities. This deal has helped us maintain our strategic market position as one of the UAE's fastest-growing Islamic banks."

He said that fully owned by the Abu Dhabi Investment Council, Al Hilal BankAl Hilal Bank aims to become the leading financial corporation in the region.

Through its 19 branches across the UAE, Al Hilal BankAl Hilal Bank has emerged as a major contributor to the growth of local Islamic banking. The bank is renowned for using the latest technologies and innovative concepts such as its Mall Branch the largest banking branch in the world to deliver high quality conventional and Islamic banking services.