Exclusive: Banks’ Contributions To Port Said Steel Loan

The National Bank of Egypt (NBE), National Société Générale Bank (NSGB), Commercial International Bank (CIB) and Bank Audi Egypt have agreed on the values of their contributions to the EGP 1.040 billion loan arranged for the National Port Said Steel Company (NPSS).

Amwal Al Ghad reports exclusively the values of contributions to the loan as follows: NBE (EGP 430 million), loan agent NSGB (EGP 300 million), loan guarantee manager Bank Audi (EGP 160 million) and CIB (EGP 150 million).

Sources said the banks will provide the total value of their contributions without asking other banks to contribute to the loan, except NBE that considers asking other banks to contribute about EGP 130 million.

Amwal Al Ghad had earlier reported exclusively on January 23rd that a consortium comprised of NBE, NSGB, CIB and Bank Audi will arrange a long-term loan for the National Port Said Steel Company to finance part of the investment cost, EGP 1.2 billion, needed for establishing a new iron factory in Ain Sukhna.

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 of 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.

It is worth mentioning that Ahmed Abu Hashima, owner of Egyptian Steel Group, targets to secure Islamic finance worth EGP 1.070 billion from Banque Misr and Bank Audi Egypt to finance its new factory in Beni Suef. The seven-year term loan grants the company a grace period of two years and a repayment period of five years.

The banks’ contributions to the loan are as follows: