Qatar Steel signs a US$250M loan facility deal

Qatar Steel, a wholly owned subsidiary of Industries Qatar (IQ), has entered into a subordinated loan facility agreement for a medium-term loan facility of US$250 million (QAR912.5 million), with a syndicate of two banks; the International Bank of Qatar (IBQ) and the Union National Bank (UNB). IBQ, the facility agent, will provide US$150 million (QAR547.5 million) of the project's cost with UNB funding the remaining balance of US$100 million (QAR365 million).

The new subordinated loan will be utilised by Qatar Steel to construct a high-tech steel melt shop with a 1.1 MTA production capacity with the recognition of much expansion work on this project has already started and going on right now. The expected launch date is first quarter of 2013, and the targeted markets are local and regional.

Mr. Ali Bin Hasan Al-Muraikhi, Director and General Manager of Qatar Steel, said, "The loan facility agreement marks a significant milestone in the expansion plans and aspirations of Qatar Steel, which is a leader in the steel industry, with a current annual production capacity of 2.4 million tonnes of DRI/HBI, 1.9 million tonnes of molten steel, 1.8 million tonnes of steel reinforcement bars and 0.3 MTPA of wire rod."