Banque Misr and Bank Audi Egypt asked all Islamic banks and some of the conventional banks to contribute to the EGP 1.070 billion loan arranged for the Egyptian Steel Group last week.
The loan will be used to finance the establishment of a steel factory in Beni Suef. The Group will be given the seven-year term loan with a grace period of two years and repayment period of five years.
Sources said the Egyptian Arab Land Bank (EALB) is the only bank that approved to contribute to the loan with EGP 150 million.
Sources revealed that the signing of the agreement was delayed because Istisna and Ijara financing forms are being implemented for the first time in the Egyptian market. This agreement will encourage banks to expand in providing companies with Sharia-compliant finances, sources noted.
The Egyptian Steel Group had earlier received a bridge loan worth EGP 275 million from Banque Misr. Sources added that Société Arabe Internationale de Banque (SAIB) had earlier withdrawn from the consortium arranging the loan.
