Al Yamamah steel unit signs SAR 500M financing deal with ANB

What's the deal? Al Yamamah Company for Reinforcing Steel Bars Co.Dealroom has a profile for this one. Try Dealroom →, a subsidiary of Saudi Arabia's Al Yamamah Steel Industries Co.Dealroom has a profile for this one. Try Dealroom →, signed a SAR 500 million ($133 million) Shariah-compliant credit facilities agreement with Arab National Bank (ANB)Dealroom has a profile for this one. Try Dealroom → on August 24. The financing carries a seven-year tenor and is secured by a promissory note.

What's the endgame? The subsidiary, a closed joint-stock company, will use the funds to establish a steel billet plant. Steel billets are semi-finished products used as feedstock to make reinforcing bars and other long steel goods.

Why now? The company said in a statement to TadawulDealroom has a profile for this one. Try Dealroom → that the related procedures will be completed successively. No related parties were involved in the deal.

The signal: The debt-financed expansion points to continued investment in domestic steel production capacity in Saudi Arabia, moving upstream into raw feedstock manufacturing.

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