MANAMA – Bahrain Steel (previously known as Gulf Industrial Investment Company/GIIC) has successfully closed the syndication of its $340,000,000 senior secured term and revolving credit facilities. The facilities are split between a 7-year $300,000,000 amortizing term loan and a 7-year $40,000,000 revolving credit facility. 

The facilities will be utilized 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 signing ceremony was held in Bahrain Steel’s Club house Sundaym which was presided over by the company’s Chairman  Khalid Al Bassam, and was attended by the senior management of the company and syndicate banks.

Speaking on the occasion, the chairman said “the successful syndication of Bahrain Steel loan facilities is a vindication of our philosophy that lays emphasis on partnerships. Bahrain Steel’s great story and the hard work of the Initial Mandate Lead Arrangers contributed to the success of this syndication. The facility was oversubscribed, which is a clear evidence of the confidence of the banks in the company due to its clarity of vision and excellence in its operations. We intend to continue to earn the lenders’ confidence by not only being innovative in pursuit of our vision but also ensuring that we remain a sound and profitable business, worthy of the trust the syndicate banks have reposed in us.” – SG