ABSTRACT
In August 2010, Emirates Steel closed the financing of its US$2.5bn expansion project, with US$1.6bn of senior debt facilities and US$600m of the subordinated working capital facilities making this the single largest steel financing ever closed in the Middle East and one of the largest project financings closed in the region in that year. The financing needs of Emirates Steel were substantial, amounting to US$2.2bn including subordinated working capital facilities. This represents the largest ever steel industry financing in the Middle East region. The Islamic facility was structured as a standard forwards lease. The Islamic institutions acquired the assets and leased them back to Emirates Steel. Islamic finance is increasingly sought by borrowers in the UAE and the wider Middle East region. Emirates Steel and the GHC were no exception and consequently chose to maximize the size of the Islamic tranche, which supported the national objective of promoting Sharia-compliant borrowing.
