The loan proceeds to refinance part of its existing debt.
Emirates Steel has hired BNP Paribas to coordinate a $400 million loan financing.
Emirates Steel, the largest steel producer in the UAE, has $1.3 billion in outstanding credit facilities it raised in 2014 which are due in 2022.
The $400 million loan, which will be completed before the end of October, will be Shari'ah-compliant, First Abu Dhabi Bank, Abu Dhabi Islamic Bank, and Union National Bank are expected to participate in the financing.
Senaat, the parent company of Emirates Steel, has also approached banks for a potential debut US dollar Sukuk sale, reported Reuters.