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Sun 4 Dec 2011 06:31 PM

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Qatar Steel secures $250m loan for expansion

Funding will be used to finance new steel melt shop to produce 1.1m tonnes of steel a year

Qatar Steel secures $250m loan for expansion
Qatar Steel has secures a $250m loan to fund expansion plans (Getty Images)

Qatar Steel, a wholly-owned subsidiary of Industries Qatar, has secured a $250m subordinated loan facility from two banks to finance expansion, it said on Sunday.

International Bank of Qatar (IBQ) is acting as facility agent and will provide $150m of the total while Abu Dhabi-based Union National Bank will fund the remainder.

The statement did not provide details of the pricing or other terms of the medium-term loan facility.

The funding will be used to finance a new steel melt shop, which will produce 1.1 million tonnes of steel a year and is expected to launch in the first quarter of 2013, targeting local and regional markets, Qatar Steel said in a statement said.

Qatar, the world's largest exporter of liquefied natural gas, has been investing in industries other than gas. It launched a $5.7bn aluminium plant in December 2009 which was inaugurated last year.

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