6 Banks Sign Loan Agreement With East Delta Electricity Production

The National Bank for Development (NBD), Banque Misr, Egyptian Gulf Bank, Al Baraka Islamic Bank of Egypt, Bank Audi Egypt and United Bank Egypt signed the definitive agreements of the EGP 620 million loan they arranged for the East Delta Electricity Production Company.

Sources said the banks had severally delayed signing the loan agreements because of the latest unstable political conditions. An official conference will be held on the next few days to announce the details of the finance, sources added.

Amwal Al Ghad had earlier published exclusively the value of the banks’ contributions to the loan as follows: NBD (EGP 128 million), Banque Misr (EGP 200 million), Egyptian Gulf Bank ( EGP 150 million), Al Baraka Islamic Bank of Egypt (EGP 75 million), Bank Audi Egypt ( EGP 42 million) and United Bank Egypt (EGP 25 million).

The East Delta Electricity Production Company requires a letter of credit; of which 15% was earlier covered and the remaining 85% is financed by the Mudaraba syndicated loan arranged by the banks. The finance will be used to finance the importing of turbine spare parts for the East Delta Electricity Production Company.

The banks’ contributions to the Islamic syndicated loan are as follows: