NBE To Contribute EGP 300 Mln To National Port Said Steel Loan

The National Bank of Egypt (NBE) plans to contribute EGP 300 million to the EGP 1.1 billion loan it arranges with National Société Générale Bank (NSGB), Commercial International Bank (CIB) and Bank Audi Egypt for the National Port Said Steel Company (NPSS).

Sources said the banks will hold a meeting next month to agree on their contributions to the loan.

Amwal Al Ghad had earlier reported exclusively that a consortium comprised of the four banks will arrange a long-term loan for NPSS. The finance will be used to cover part of the investment cost of establishing a new iron factory in Ain Sukhna which is valued at EGP 1.2 billion.

The new factory targets to produce 250,000 tons of steel and 250,000 tones of pellets. The Egyptian Steel Group plans to increase the capital of NPSS to EGP 550 million to provide the required finance for establishing the factory.

This move is part the Egyptian Steel Group’s plan to produce 2 million tons of steel and pellets as well as seize 20% of the market share of steel production in Egypt through acquiring four factories in Beni Suef, Ain Sukhna, Alexandria and Port Said.