The five banks, which arranged the long-term US$ 1.250 billion loan for the Egyptian Company for Ethylene, will sign the initial loan agreement today.
Al loan guarantee amounting to EGP one billion will cover the loan arranged by the consortium, which is composed of the National Bank of Egypt (NBE), Banque Misr, Commercial International Bank (CIB), Banque Du Caire and Arab International Bank. The loan arrangers will sell US$ 560 million and secure US$ 690 million of the loan.
60% of the syndicated loan is a dollar-currency segment amounting to US$ 750 million and 40% of which is a local-currency segment amounting to US$ 500 million.The loan will finance the construction of ethylene and polyethylene plants in Alexandria, sources added.
The National Bank of Egypt, Banque Misr and Banque Du Caire had earlier offered the Company a bridge loan with value of US$ 240 million directed to issue letter of credit for the Project’s contractor. The National bank of Egypt and Banque Misr each injected US$ 85 million and Banque Du Caire offered US$ 70 million in the bridge loan.
The National Bank of Egypt will inject US$ 200 million to the syndicated loan and sell US$250 million for other banks. Banque Misr approved to inject US$ 225 million. Commercial International Bank (CIB) will offer US$ 175 million. Banque Du Caire and Arab International Bank will each offer US$ 75 million.
