East Delta Electricity To Sign EGP 1.6 Bln Loan Agreement Next Week

The National Bank of Egypt (NBE), Banque Misr, Piraeus Bank Egypt, Industrial Development and Workers Bank of Egypt and Faisal Islamic Bank of Egypt plan to sign an agreement of the EGP 1.6 billion syndicated loan arranged for the East Delta Electricity Production Company next week.

Sources said the loan will be used to finance the establishment of four productive units at the Suez thermal power plant. The 12-year term loan has a grace period of 3.5 years and a repayment period of 8.5 years.

The investment cost of the project is more than EGP 5 billion and will be covered through loans from the African Development Bank and Islamic Development Bank as well as the syndicated loan arranged in Egypt.

Sources close to the matter said the National Bank of Egypt (NBE) will contribute EGP 810 million, Banque Misr will contribute EGP 400 million, the Industrial Development and Workers Bank of Egypt will contribute EGP 150 million, Piraeus Bank Egypt will contribute EGP 140 million and Faisal Islamic Bank of Egypt will contribute EGP 100 million to the loan.

Amwal Al Ghad had previously reported that the East Delta Electricity Production Company received a bridge loan amounting to EGP 150 million to meet the prepayment requirements for the contractors who are assigned to establish the productive units. NBE and Piraeus Bank Egypt each contributed EGP 75 million to the bridge loan.