East Delta Electricity Signs EGP 1.6 Bln Loan Agreement Today

The East Delta Electricity Production Company has signed the agreement of the EGP 1.6 billion loan today with the National Bank of Egypt (NBE), Banque Misr, Piraeus Bank Egypt, Industrial Development Bank of Egypt and Faisal Islamic Bank of Egypt to finance the establishment of four productive units at the Suez thermal power plant which will cost about EGP 4.5 billion.

The 12-year term loan, which has a grace period of 3.5 years and a repayment period of 8.5 years, will be with an interest rate of 3.1% above corridor rate. According to the company’s five-year term plan, these units will start production in 2015. The company will also receive loans from the African Development Bank and Islamic Development Bank.

The loan will be secured by contributions from banks as follows: NBE (EGP 810 million), Banque Misr (EGP 400 million), the Industrial Development and Workers Bank of Egypt (EGP 150 million), Piraeus Bank Egypt (EGP 140 million) and Faisal Islamic Bank of Egypt (EGP 100 million).

The East Delta Electricity Production Company had earlier received a bridge loan amounting to EGP 150 million to meet the prepayment requirements for the contractors who are assigned to establish the productive units. NBE and Piraeus Bank Egypt each contributed EGP 75 million to the bridge loan.

It is worth mentioning that NBE is the largest financier of electricity sector in the last five years as it currently arranges a number of loans such as the EGP 4.6 billion loan which will be used to finance power plants in Ismailia with capacity of 1000 megawatt and a power plant in Damietta with capacity of 500 megawatt.