UK-based J.O. Steel Holdings PLC has secured a $692 million credit facility from a consortium of banks and financial institutions led by Saudi British Bank (SABB), the company said in a statement.
Another $173 million will be provided in equity by the company through convertible warrants.
The funds will be used to establish an integrated billet manufacturing plant within Ras Al Khair Industrial City in Saudi Arabia.
The mill, will hold an annual production capacity of approximately 1.8 million tons, and is expected to go into commercial production during the first quarter of 2025.
“Each warrant will carry a right exercisable by the holder to subscribe to one (1) equity share against each warrant at a price to be determined at a later stage, to establish the project on an overall debt-to-equity ratio of 80:20,” the company said.
A land lease agreement is said to be signed by the steel company in September with the Royal Commission for Jubail and Yanbu (RCJY).
“The investment is in line with the Saudi government’s National Steel Strategy, which aims to expand Saudi flat steel production according to Saudi Vision 2030,” the company said.
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