ICEC

Egyptian Electricity Holding signs Credit Suisse and HSBC-led $900 mln loan

State-owned Egyptian Electricity Holding Company (EEHC) has electronically signed on Tuesday a $900 million syndicated loan agreement with a consortium of banks led by Credit Suisse and HSBC.

The consortium comprises of 15 local, Arab, and international banks, including the African Export-Import Bank (Afreximbank), First Abu Dhabi Bank (FAB), and Arab Banking Corporation (Bank ABC), a senior banking source close to the matter told Amwal Al Ghad on Tuesday.

HSBC contributed $40 million to the EEHC’s loan, the banker added.

Banque Misr, Commercial International Bank (CIB), and the Egyptian Gulf Bank (EG Bank) each contributed around $20 million to the loan, the banker said.

The debt facility, guaranteed by the Ministry of Finance, will be repaid within five years including a two-year grace period, the banker said.

It will go for meeting payments and dues for suppliers and contractors, as well as financing EEHC’s projects, the banker said.

It was marketed to other banks at around $700 million but given banks’ oversubscription the size has been raised to $900 million, banking sources close to the matter told Reuters.

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