The National Bank of Egypt (NBE), Banque Misr and National Societe Generale Bank (NSGB) target signing a financing contract to lend El Nasr Company for Coke and Chemicals, subsidiary of the Metallurgical Industries Company, €85 million during this month.
The three banks have not given final approvals yet, sources said, expecting the loan agreement to be signed before the end of 2012.
The loan, worth €85 million (EGP 720 million), will be secured through contributions from banks as follows: NBE and Banque Misr (€60 million) and NSGB (€25 million).
The loan will be used to finance the rebuilding of the third battery of the company to comply with the new standards as El Nasr Company for Coke has four batteries with 230 ovens which have annual production capacity of 1.6 million tonnes.
The company rebuilt its first battery in 2000 and the second one in 2006. It targets to rebuild the third battery which has 65 ovens with annual production capacity of 560,000 tonnes. The third battery is slated to be in service in 2013. The loan will finance 68% of the project’s investment cost which is €125 million.
