Arrangers of the loan offered to Egyptian Chemical Industries Company (KIMA) will sign this week the memorandum of terms and conditions of the US$ 516 million syndicated loan that will finance restructuring the company. KIMA to work with natural gas after the board of directors has approved this memorandum last Thursday.
Amwal Al Ghad was informed that Banque Du Caire signed last week the memorandum of terms and conditions, as the Bank considers participating in the loan with an amount that ranges between US$ 70 and US$ 75 million.
The loan arrangers include National Bank of Egypt as the leading arranger, Banque Misr, Banque Du Caire, Commercial International Bank (CIB), Arab African International Bank and NSGB.
KIMA Company affirmed earlier that it faces no obstacles in receiving the amount of natural gas required by its new project as it is approved by the Egyptian General Petroleum Corporation and its producing companies. Mohamed El-Mahdy, financial manager of the Company, said the Company has been connected to natural gas line, but the new project needs the required finance agreed on with some banks.
El-Mahdy added that there are still negotiations with National Bank of Egypt, NSGB and CIB over the new project’s loan agreement. EL-Mahdy negates what was said that the banks refused to proceed towards financing 60% of the cost of the project which is US$ 540 million that will finance two natural gas-powered units; a unit with a production capacity of 1220 ton annually and another unit with a production capacity of 530 ton annually.
