Misr Iran Development Bank withdrew its offer of contributing to the EGP 1.07 billion loan arranged for the Egyptian Steel Group, owned by the businessman Ahmed Abu Hashima, sources said.
The bank earlier said it will contribute EGP 100 million to the seven-year term loan, but the bank retreated because it does not want to contribute to long-term loans, sources added.
Banque Misr and Bank Audi Egypt asked banks last month to contribute to the loan which will finance the establishment of Egyptian Steel Factory in Beni Suef. The company will be given a grace period of two years and a repayment period of five years.
The value of finance was raised from EGP 900 million to EGP 1.070 billion in order to cover the costs of restructuring a factory for steel in Alexandria.
Société Arabe Internationale de Banque (SAIB) has joined the consortium comprising of Banque Misr and Bank Audi. SAIB will provide EGP 150 million.
