Eight banks approved initially to contribute with up to EGP 1.2 billion to the syndicated loan worth EGP 1.07 billion arranged by Banque Misr and Bank Audi for the businessman Ahmed Abu Hashima, owner of the Egyptian Steel Group.
Sources said the term sheet of the loan was signed, adding that a report prepared by an independent engineer will be attached to the sheet before loan arrangers officially invite other banks to contribute to the loan.
The syndicated loan will finance the establishment of the Egyptian Steel Factory in Sohag. The seven-year loan gives a grace period of two years and repayment period of five years.
The project will be built on an area of 500,000 m2 with Egyptian-Qatari investments. The investment cost of the project is EGP 1.6 billion. The factory is expected to start the production by Q1 of 2014 with production capacity of about one billion tons.
