Bahrain Steel has completed a $340 million loan with a group of regional and international banks which will be used to repay existing debt and fund its general business purposes, the company said on Sunday.
The seven-year financing is split between a $300 million loan with an amortising structure and a $40 million revolving credit facility, it said in a statement.
Under an amortising loan, the borrower repays the principal during the lifespan of the deal, instead of just servicing the interest payments and repaying the main facility at the end.
The deal, which closed oversubscribed, will reduce the company’s borrowing costs, the statement said, without providing details.
Eight banks funded the loan: Arab Banking Corp, HSBC, Mashreq, State Bank of India, Al Khaliji Commercial Bank, BNP Paribas, Doha Bank, and Qatar National Bank.
Bahrain Steel, which was established in 1984, is wholly-owned by local steel industry investment vehicle Foulath. The company operates two iron-ore pelletising plants in Hidd, located to the east of the capital Manama, with a production capacity of around 11 million tons