The National Bank of Egypt (NBE) decided to raise the finance value offered to the Egyptian Ethylene and Derivatives Company (Ethydco) by EGP 300 million to reach EGP 1.1 billion, up from EGP 800 million to finance the construction of a new electric plant that will provide the company’s industrial complex with the required power.
Sources said such increase came after the costs of construction have hiked and the value of Egyptian pound fell against other currencies especially that the finance has a dollar-currency segment and that some of the required materials will be imported from outside the country.
The bank plans to sign the memorandum of terms and conditions with the company this month and will assign other banks to contribute from EGP 700 million to EGP 800 million to the loan.
It is worth mentioning that Ethydco received a loan worth US$ 1.250 billion from five banks to finance the establishment of a complex ethylene and polyethylene plants in Alexandria.
