Bahrain Steel has completed a $340 million loan with a group of regional and international banks which will be used to repay existing debt and fund its general business purposes, the company said. It comprises a seven-year $300m amortizing term loan and a seven-year $40m revolving credit facility, Gulf Business News reported Monday.
The new facility will reduce its overall cost of borrowing. Arab Banking Corporation, HSBC and Mashreqbank acted as initial mandated lead arrangers, bookrunners and underwriters. Al Khaliji Commercial Bank, BNP Paribas, Doha Bank, and Qatar National Bank acted as mandated lead arrangers, whereas State Bank of India acted as a lead arranger.
“The successful syndication of the loan is a vindication of our philosophy that lays emphasis on partnerships,” Bahrain Steel chairman Khalid Al Bassam said. “The facility was oversubscribed, which is a clear evidence of the confidence of banks in the company.
“We intend to continue having the lenders’ confidence by ensuring we remain a sound and profitable business.”
Established in 1984, Bahrain Steel, wholly-owned by Foulath Holding, is a leading producer of iron-ore pellets used in the production of steel. It operates two pelletising plants in Bahrain with a total capacity of 11 million ton per year. With investments at current market value in excess of $3.5 billion, Foulath has established companies across the entire steel value chain from “mine to metal” and has developed the world’s only fully integrated single site steel complex located in Bahrain.
