Union National Bank (UNB) led six local and regional banks in signing a Dh1.04 billion ($283 million) syndicated term loan facility for Arkan Building Materials Company

The loan will fund the construction of a new and fully integrated cement manufacturing complex in Al Ain planned by the leading building materials supplier.

The signing ceremony was attended by Salem Bin Mohammed Al Dhaheri, chairman of Arkan, Mohammed Nasr Abdeen, CEO of UNB and senior executives from the participating banks.

UNB acted as the Mandated Lead Arranger, Facility Agent and Security Agent for this project finance deal. The six participating banks are: First Gulf Bank, National Bank of Abu Dhabi, Arab African International Bank, Doha Bank, National Bank of Dubai, and Commercial Bank International.

The cement factory is being constructed by China National Building Materials Company on a turnkey basis. The construction is expected to be completed by end 2009.  It will have production capacity of 3.1 million tonnes per year of clinker and milling capacity of 4.5 million tonnes per year.

Arkan Building Materials Company was established to own and develop companies and businesses involved in the construction-related sector in the UAE. Arkan is listed on the Abu Dhabi Securities Exchange (ADX) and has two subsidiaries: Emirates Cement Factory and Emirates Concrete Block Factories. - TradeArabia News Service