RCS - J.O Steel Holdings - J.O Steel Holdings PLC to invest $865m
31/08/2022 10:45
For best results when printing this announcement, please click on link below: http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220831:nRSe7548Xa&default-theme=true RNS Number : 7548X J.O Steel Holdings Ltd 31 August 2022 J.O Steel Holdings PLC to invest $865 million in Saudi Arabia 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) to establish an integrated billet manufacturing plant within Ras Al-Khair Industrial City in the Kingdom of Saudi Arabia. The proposed steel mill, to be located north of Jubail on the eastern coast of Saudi Arabia, will have an annual production capacity of approximately 1.8 million tons and is expected to go into commercial production in Q1 2025. The company will provide $173 million in equity to be raised through convertible warrants. 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. Representatives from J.O. Steel Holdings PLC are expected to sign a land lease agreement to that effect with the Royal Commission for Jubail and Yanbu (RCJY) in September. 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. About J.O. Steel Holdings PLC J.O. Steel Holdings PLC is a steel-manufacturing holding company incorporated under the laws of the United Kingdom. It currently owns shares in various steel plants located in South Asia and Africa. Belgian industrialist Javed Opgenhaffen has a 92% stake in the company. Opgenhaffen's other business enterprises include textile and garment factories, steel industries, an ethanol refinery, ceramic tiles factories, and real estate and directly employ over 20,000 people. He also owns significant stakes in Bangladesh-based insurance companies and banks. Press Contact: J.O Steel Holdings PLC pr@josteelholdings.com This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com (mailto:rns@lseg.com) or visit www.rns.com (http://www.rns.com/) . Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word “Reach” in the source column of the News Explorer pages of London Stock Exchange’s website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy) . END NRAGIGDIRXXDGDB