In line with its ambitious vision to be universally recognized as a leading and constantly growing force in the steel industry of the region, and in light of its excellent business relations with local financial institutions, Qatar Steel, a wholly owned subsidiary of Industries Qatar (IQ), has signed a subordinated loan facility agreement for a medium-term loan facility of USD 250 million (QAR 912.5 million), with a syndicate of two banks; the International Bank of Qatar (IBQ) and the Union National Bank (UNB). IBQ, the facility agent, will provide USD 150 million (QAR 547.5 million) of the project’s cost with UNB funding the remaining balance of USD100 (QAR 365 million).

The loan facility agreement was signed on behalf of Qatar Steel by Mr. Ali Bin Hasan Al-Muraikhi, Director and General Manager, Mr. George Nasra, Managing Director of IBQ and Mr. Ala’ Abu Mughli, Senior Vice President and Country Head of UNB – Qatar. The signing ceremony was attended by Qatar Steel’s managers, and high ranking officials from both banks.

The new subordinated loan will be utilized by Qatar Steel to construct a state-of-the-art new Steel Melt Shop with a 1.1 MTA production capacity with the recognition of much expansion work on this project has already started and going on right now. The expected launch date is 1st Quarter 2013, and the targeted markets are local and regional

Mr. Ali Bin Hasan Al-Muraikhi, Director and General Manager of Qatar Steel expressed his delight at signing this loan facility agreement. “We are very pleased to build up strategic partnerships with both IBQ and UNB, and to establish solid cooperation and business relations, and we trust that such a loan facility would enable us to expand our existing Plants, and to meet our commitments towards our customers”, he declared.

Mr. Al-Muraikhi added that 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 2.4 million tons of DRI/HBI, 1.9 million tons of Molten Steel, 1.8 million tons of Steel reinforcement Bars and 0.3  MTPA  of Wire Rod.