5 Banks To Sign Finance Agreement With Egyptian Steel Group Next February

Société Arabe Internationale de Banque (SAIB), United Bank and Egyptian Arab Land Bank (EALB) have approved to contribute to the EGP 1.07 billion loan arranged by Banque Misr and Bank Audi Egypt for Egyptian Steel Group, owned by the Egyptian businessman Ahmed Abu Hashima, sources said.

The contributions to the loan will be as follows: EALB (EGP 150 million), SAIB (EGP 150 million) and United Bank (EGP 50 million). Banque Misr and Bank Audi Egypt will provide the remaining value.

Sources said that another bank may contribute to the loan in the upcoming period. Egyptian Gulf Bank (EGB) has withdrawn from the consortium after it earlier said it will contribute EGP 100 million to the loan.

The definitive loan agreements will be signed next February as the loan arrangers will meet in the next period to agree on their contributions to the loan. The loan was delayed because Istisna and Ijara finances are new schemes in financing companies.

The seven-year term loan will be used to 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.

Amwal Al Ghad had earlier reported exclusively that Banque Misr approved to grant Egyptian Steel Group a bridge loan worth US$ 275 million.