The National Bank of Egypt (NBE), Commercial International Bank (CIB), Arab African International Bank (AAIB), NSGB and Banque Du Caire will sign the final agreement of the loan which will be offered to the Egyptian Chemical Industries Company (KIMA) by the middle of the next month after getting the approvals for the project.
Mahmoud Montasser, board member and head of credit at NBE, said the loan arrangers have set with KIMA the conditions, term and interest rate of the finance. Banks are currently getting the boards’ approvals over the finance.
The value of the finance was reduced from US$ 516 million to US$ 445 million, representing 56.4% of the project’s total investment cost, estimated at US$ 787 million including charges, Montasser added. This loan is divided into a foreign-currency segment of US$ 224 million and a local-currency segment of US$ 221 million (=EGP 1.33 billion).
The loan will be directed to finance the construction of two lines for producing Ammonia and Urea powered by natural gas in Aswan. Loan arrangers agreed that NBE will contribute with US$ 100 million and CIB and Banque Du Caire will each contribute between US$ 70 and US$ 75 million. AAIB still studies contributing with US$ 100 million and NSGB will offer the rest value.
