A consortium, comprised of the National Bank of Egypt (NBE), Banque Misr, Commercial International Bank (CIB), Arab African International Bank (AAIB) and Banque Du Caire, intends to send the memorandum of terms and conditions of the US$ 423 million loan after it was amended to the Egyptian Chemical Industries Company (KIMA) this week, sources said.
KIMA approved a request from the loan arrangers to increase capital to EGP 1.5 billion and convert it to foreign currency after the increase in the value of dollar against the Egyptian pound, sources elaborated.
The increase in the prices of natural gas which is also not constantly available in the market will pose a big problem against the company. Sources expected the definitive loan agreement to be signed next June.
The loan will be used to finance the renewal of KIMA’s fertilizers factory and the construction of a new factory in Aswan with investment cost of US$ 787 million. NBE, Banque Misr, CIB and AAIB will each contribute US$ 90 million, while Banque Du Caire will contribute US$ 63 million to the loan.
In addition, NBE, Banque Misr, CIB, AAIB, National Société Générale Bank (NSGB) and Faisal Islamic Bank of Egypt will also send the amended memorandum of terms and conditions of the loan arranged to finance South Helwan Power Plant, sources told Amwal Al Ghad, saying banks approved the company’s request to extend the finance term from 10 to 12 years, but declined to disclose the amended conditions.
NBE will contribute EGP 1.1 billion to the loan, while the remaining finance will be provided equally by the other five banks.
Power Generation Engineering and Services Company (PEGSCo) is the adviser of South Helwan Power Plant. The establishment cost of the project is more than EGP 13 billion.
The World Bank, Islamic Development Bank (IDB), Kuwait Fund for Arab Economic Development, African Development Bank and Arab Fund for Economic & Social Development will contribute US$ 500 million, US$ 450 million, KWD 30 million, US$ 90 million and KWD 55 million respectively to the foreign-currency tranche of the loan.
The power plant will operate three natural gas-run steam turbines and will be connected to the national power grid to meet the rising demand for electricity.
