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ABC Islamic Bank (E.C) and Emirates Islamic Banks PJSC jointly close US$70 million syndicated Murabaha financing facility for Esfahan Steel Company

ABC Islamic Bank (E.C) and Emirates Islamic Bank PJSC (the “Arrangers”) are pleased to announce that they have successfully closed syndication for a 3-year amortizing syndicated Murabaha financing facility for Esfahan Steel Company, Islamic Republic of Iran (“ESCO”).
The transaction has received strong support from the general syndication market and the Facility has been over-subscribed. The bank syndicate for the Facility includes many of the leading regional Islamic and conventional institutions.

The signing ceremony for the Facility was held in Bahrain and was attended by Mr. Behram Sobhani Chairman and Managing Director of Esfahan Steel Company, Mr. Mehrdad Choubineh Director of Financial Affairs of its Parent and Guarantor Iran Mines and Mining Industries Development and Renovation Organization (IMIDRO) and senior representatives of the Arrangers and the participating banks. 

At the signing ceremony, Mr. Abdulmagid Breish, Chairman of ABC Islamic Bank, commented on Esfahan Steel Company’s position as a leading steel manufacturer in the Islamic Republic of Iran and the strong support received from the participants and said, “ABC Islamic Bank and Emirates Islamic Bank – the Arrangers are delighted to have been given the opportunity to arrange this financing which will form the basis of a long standing partnership with Esfahan Steel Company and IMIDRO. We are delighted to have this prestigious group of banks alongside us.”

The 11-strong syndicate comprises the following banks:


ABC Islamic Bank (E.C.)

Emirates Islamic Bank PJSC


Senior Lead Manager

Commercial Bank of Qatar (Q.S.C.)

Dubai Islamic Bank

Melli Bank plc


Lead Manager

Bahrain Islamic Bank B.S.C


Co-Lead Manager

Amlak Finance PJSC

British Arab Commercial Bank Limited

Jordan International Bank plc



Banque Intercontinentale Arabe

The Arab Investment Company S.A.A

ESCO is a leading steel producer in the Islamic Republic of Iran, and commenced production in 1971. It is a leading wholly owned subsidiary of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) which in turn is fully owned by the Ministry of Industries and Mines - Government of Islamic Republic of Iran. ESCO employs 9,000 people and produces a wide range of steel products. In 2004/05 ESCO achieved a production level of 2.29 million tons per annum.

For fiscal year ending March 20, 2005, ESCO recorded net earnings of US$952 million, an increase of 38% over 2003/04. ESCO’s total assets recorded an increase of 31% to US$2.36 billion, whilst the total net worth was recorded at US$772 million, as at year end March 20, 2005.


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