Under the leadership of the National Bank of Egypt (NBE), 6 banks succeeded in completing one of the biggest financing deals between Egypt’s banking and electricity sectors.
The loan deal worth EGP 3 billion (around US$405 million) is to fund the execution of two power stations located in South Helwan and Assiut.
NBE, the lead arranger and loan agent, alongside Banque Misr, Arab African International Bank (AAIB), Commercial International Bank (CIB), Faisal Islamic Bank of Egypt, Qatar National Bank Al Ahli (QNB Al Ahli) have signed long-term syndicated financing contracts with the state-run Upper Egypt Electricity Production Company (UEEPC).
UEEPC is an affiliate of the Egyptian Electricity Holding Company.
For the South Helwan power station, it will be with production capacity of 1950 megawatts, to enjoy a funding of EGP 2 billion. It will have three units; each to produce 650 megawatts of electricity. The second power station is in Assiut, with production capacity of 650 megawatts through one unit, to enjoy EGP 1 billion of the funding.
Upper Egypt Electricity Production Company will have a grace period of up to 4 years on the funding, while payments on the loans will be made over a 12-year period.
From his part, Mahmoud Montaser – Vice Chairman of NBE – stated that those funds are considered the biggest granted from the working banks in Egypt to the electricity sector, which in return reflects the local funding institutions’ trust in energy projects with high economic feasibility.
The 6 banks’ contributions are as follows: NBE (EGP1.100 billion), Banque Misr (EGP 500 million), Arab African International Bank (EGP 500 million), Commercial International Bank (EGP 500 million), Faisal Islamic Bank of Egypt (EGP 200 million), and QNB Al Ahli (EGP 200 million).