Al-Muraikhi (centre) with Nasra (right) and Mughli after concluding the QR912.5mn loan deal for Qatar Steel with IBQ and UNB

Qatar Steel has signed a “subordinated loan facility” worth QR912.5mn with a syndicate of two banks - International Bank of Qatar (IBQ) and Union National Bank (UNB), which will be utilised for the IQ subsidiary’s expansion.
The medium-term loan facility will be used to construct a state-of-the-art steel melt shop with a 1.1mn tonnes per year (tpy) production capacity.
The new melt shop is expected to be launched by Q1, 2013 with Qatar Steel aiming both the local and regional markets for its product.
IBQ, the facility agent, will provide QR547.5mn of the project’s cost with UNB funding the remaining QR365mn.
The loan facility agreement was signed on behalf of Qatar Steel by Ali bin Hasan al-Muraikhi, director and general manager; George Nasra, IBQ managing director and Ala’ Abu Mughli, senior vice president and country head of UNB–Qatar.
The ceremony was attended by senior Qatar Steel managers and executives from both banks.
Al-Muraikhi said, “We are very pleased to build up strategic partnerships with both IBQ and UNB, and establish solid co-operation and business relations with them. We believe that such a loan facility would enable us to expand our existing plants and meet our commitments towards our customers.
“The loan facility agreement marks a significant milestone in the expansion plans and aspirations of Qatar Steel, which is a leader in the steel industry, with a current annual production capacity of 2.4mn tpy of DRI/HBI, 1.9mn tpy of molten steel, 1.8mn tpy of steel reinforcement bars and 0.3mn tpy of wire rod.
Nasra said, “IBQ is proud to finance one of Qatar’s most important and productive projects, which will undoubtedly contribute to the country’s economic development. Through our unique and market-leading project financing, we are always committed to supporting Qatari companies in their long term expansion and development plans.
“In particular, we are pleased to be backing Qatar Steel, the market leader in the steel industry. This year IBQ has been at the forefront of a number of other financing activities for Qatari companies among which are Gulf Helicopters Company, Gulf Drilling International and Doha Cables.’
Mughli said, “This is our first local financing to Qatar Steel and we hope to develop our relationship further with Qatar Steel. Our support to Qatar Steel operations reflects UNB’s confidence in the company’s business model and further indicates the trust that the bank has in the Qatari economy.”