Emirates Steel and its ultimate parent company General Holding Corporation are on track to complete the financing plan associated with Emirates Steel's Expansion Projects.

On July 1st 2010, financial close was achieved on a USD 500 million export credit facility raised by GHC on a corporate basis and insured by SACE, an Italian group that operates in the field of export credit, credit insurance, investment protection, financial guarantees, sureties and factoring.

According to GHC's Director General, HE Suhail M. Al Ameri, the SACE Facility attracted very strong interest from the international bank market. "The extent of proposals received resulted in the SACE Facility being some four times oversubscribed on very favorable terms," he said.

In parallel, Emirates Steel has successfully secured Project Finance and Working Capital commitments from both conventional and Islamic institutions for facilities totaling USD 1.7 billion.

HE Al Ameri commented that the proposals received significantly exceeded the total financing requirement of the company with the transaction being almost 100% oversubscribed. He added that Emirates Steel's limited recourse financing is scheduled to reach financial close before the end of August 2010.

Emirates Steel, a subsidiary of Abu Dhabi Basic Industries Corporation, is wholly owned by General Holding Corporation, an Abu Dhabi Government-owned company. Strategically located in the Industrial City of Abu Dhabi, just 35 kilometers away from the heart of the city is the only integrated steel plant in the UAE, utilizing the latest steel manufacturing and rolling technology to produce reinforcing bar and wire rod. ESI currently has an output capacity of 2 million tonnes per annum, with capacity expected to reach 3 million tonnes in 2011 through its AED 9 billion expansion plan.