Qatar Steel, a wholly-owned subsidiary of Industries Qatar, has secured a $250 million subordinated loan facility from two banks to finance expansion, it said on Sunday.

International Bank of Qatar (IBQ) is acting as facility agent and will provide $150 million of the total while Abu Dhabi-based Union National Bank will fund the remainder.

The statement did not provide details of the pricing or other terms of the medium-term loan facility.

The funding will be used to finance a new steel melt shop, which will produce 1.1 million tonnes of steel a year and is expected to launch in the first quarter of 2013, targeting local and regional markets, Qatar Steel said in a statement said.

Qatar, the world's largest exporter of liquefied natural gas, has been investing in industries other than gas. It launched a $5.7 billion aluminium plant in December 2009 which was inaugurated last year. – Reuters