Bahrain Steel, previously known as Gulf Industrial Investment Company, has successfully closed the syndication of its $340-million senior secured term and revolving credit facilities.

The facilities are split between a seven-year $300-million amortising term loan and a seven-year $40-million revolving credit facility.

The facilities will be utilised to repay certain existing financial indebtedness of the company, and for general corporate purposes. The new loan facilities will reduce the overall cost of borrowings for the company.

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 joined as mandated lead arrangers. State Bank of India joined as a lead arranger.

The loan signing ceremony, held in Bahrain Steel’s club house, was presided over by the company’s chairman Khalid Al Bassam and attended by the senior management of the company and syndicate banks.

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 tonnes per year.

Foulath was established in June 2008 in Bahrain and is an investment vehicle and holding company primarily focused on investing in the growth of the steel industry in the GCC and broader Middle East and North Africa (Mena) region. -TradeArabia News Service