Haya Rashed Al Khalifa advises Bahrain Steel in a US$340,000,000 syndicated loan refinancing

September - 2014

Haya Rashed Al Khalifa advised Bahrain Steel (previously known as Gulf Industrial Investment Company) on a $340 million syndicated loan facility that  comprises of a seven-year $300m amortising term loan and a seven-year $40m revolving credit facility whose funds will be utilised to repay existing debts and for general corporate purposes.

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 acted as mandated lead arrangers, whereas State Bank of India acted as a lead arranger.  The facility was oversubscribed, which is a clear evidence of the confidence of banks in the company.

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 tonne per year.  Established in 2008, Bahrain-based Foulath is an investment vehicle and holding company focused on investing in the steel industry in the GCC and the broader Mena region.  With investments at current market value in excess of $3.5 billion, Foulath has established companies across the entire steel value chain from "mine to metal" and has developed the world's only fully integrated single site steel complex located in Bahrain.

The Haya Rashed Al Khalifa team was led by partner Ronald Langat assisted by junior associate Abdulla Al Buflasa and Paralegal Amani Salman.