Banque Du Caire is considering to increase a loan designated for the state-owned Misr Petroleum and Petroleum Cooperative Society Co. (CO-OP) by one billion Egyptian pound.
Accordingly, the loan would reach up to EGP 3 billion from EGP 2 billion, in which Misr Petroleum and CO-OP shall then obtain EGP 1.5 billion each, according to senior banking sources spoke to Amwal Al Ghad’s Arabic website on Sunday.
Yet, the main loan arranger – the Mandated Lead Arranger and Facility Agent Banque Du Caire has not reached any final decision whether to increase the loan’s value or not, the sources noted.
Moreover, the sources expect that the banking consortium will reach a final decision on the total value of the loan within the current month. The consortium is likely to sign the definitive loan agreement by the end of the current month, the sources added.
According to another banking source with knowledge of the loan talks, the finance will have a 48-month grace period before payments are due. It will be designed to purchase the crude and petroleum derivatives to be remarketed and distributed to petrol stations later.
This is the second loan arranged by Banque Du Caire in favour of Misr Petroleum and CO-OP since the outbreak of January 25th Revolution. The bank had arranged in late 2011 a syndicated loan worth EGP 925 million, divided as EGP 450 million for Misr Petroleum and EGP 475 million for CO-OP.
