emiratessteelDentons announced that it has advised Emirates Steel Industries (ESI) and Senaat on their recent $1.3 billion refinancing. The transaction is one of the largest to have closed in the UAE this year and involves an innovative hybrid corporate/project financing structure which allowed ESI to obtain highly competitive terms, according to a Dentons release.

Both international and local banks participated in the financing, which contained conventional and Islamic tranches.Udayan Mukherjee, a partner in the firm’s banking and project finance practice in the UAE, said, “we are delighted to have advised Emirates Steel Industries and Senaat on this landmark transaction. The successful closing of this transaction demonstrates the very high level of interest in the local and international banking market for debt raised by leading UAE based corporates.”

Emirates Steel Industries PJSC is wholly owned by General Holding Corporation PJSC (Senaat), a UAE government-owned entity. It was established to satisfy the growing demand for quality steel products for the construction sector in the country. ESI initiated a major phased expansion program in 2006 to expand its steel rolling operations in UAE to reach a capacity of 6.5 million tons over five years.

The Dentons team was led by Udayan Mukherjee, and included associates Carina Onzer and Jane Flournoy. Qasim Aslam, partner and Head of Islamic Finance Middle East, advised on the Islamic financing tranche.