The loan was acquired through a $733 million facility from seven conventional banks and a $367 million loan from two Islamic banks, international news sources said.

Emirates Steel, which has a current annual production capacity of 2 million mt, intends to increase its capacity to 3 million mt by 2011 and to 6 million mt by 2014 by investing $2.45 billion.

National Bank of Abu Dhabi, Union National Bank, First Gulf Bank, Bank of Baroda, Arab Banking Corporation, Al Khaliji France and Al Khaliji Commercial Bank were quoted as the banks that underwrote the conventional facility. Abu Dhabi Islamic Bank and Al Hilal Bank have reportedly arranged the Islamic facility.