Business & Finance Club - UAE : Emirates Steel and parent company General Holding Corporation (GHC said it has secured AED1.836 billion to finance its expansion plans for the UAE’s biggest steel manufacturer.

The export credit facility, raised by Abu Dhabi-based GHC on a corporate basis and is backed by Italian insurance group SACE, a specialist in the field of export credit, credit insurance, investment protection, financial guarantees, sureties and factoring.

HE Suhail M. Al Ameri, GHC’s director general, said:  “The extent of proposals received resulted in the SACE facility being some four times oversubscribed on very favorable terms,” he said.

The steel maker has also secured project finance and working capital commitments from both conventional and Islamic institutions for facilities totaling AED6.24 billion (US$1.7 billion).

The company is looking to capitalise on steel and steel product demand by expansion of its facilities and widen its net of export clients. In May the company reported that it had been certified to produce grade B500B rebar.

Last week the company stated that its output for finished products grew by 45.4% during the first half of 2010, compared to the same period in 2009, with product sales lifting 30% over the same period.

HE Al Ameri said credit proposals received significantly exceeded the total financing requirement and was almost 100% oversubscribed. He added that Emirates Steel’s limited recourse financing is scheduled to reach financial close before the end of this month