Abu Dhabis Emirates Steel Industries is asking banks to respond to financing requests for the long term debt for the development of its plant at Taweelah by mid May an_d is aiming to close the deal by middle of July.

The financing is split into three tranches, USD 500 million 7 year commercial loan USD 500 million Islamic finance tranche an_d a similarly sized working capital facility. The total raised is expected to be in the region of USD 1.3 billion to USD 1.5 billion.

The deal is being targeted to close in July to ensure that USD 700 million bridge loans that mature in August can be refinanced. Sources close to the deal say only UAE Islamic banks have been invited to fund the Islamic tranche.

One banker said that it is a tough timeline to get this deal done with the bridge loan maturing in August an_d also Ramadan meaning that if it is not done by the end of July, it could be delayed until even later in the year.

There is also a loan of USD 500 million for General Holding Corporation the parent of Emirates Steel, which will be backed by Italian export credit agency Sace. International banks are understood to have only been invited to participate in this deal. The GHC loan follows the parent company putting an additional USD 500 million investment into the development of the plant.