Egypt’s ELAB approves $12mln-loan for Electricity Holding Company

Egyptian Arab Land Bank (EALB) will contribute US$ 12 million of US$ 521 million to the Egyptian Electricity Holding Company’s (EEHC) loan, chairman Abdel Meguid Mohy El-Din quoted on Sunday.

The loan, provided by a consortium encompassing Banque Misr (BM), Audi Bank, National Bank of Abu Dhabi (NBAD) and the Egyptian Gulf Bank (EGB), will be allocated to fund the emergency plan of General Electric (GE) and Orascom Construction’s (OC) consortium.

General Electric (GE) and Orascom Construction will establish eight units in Assuit power plant with the capacity of 1000 megawatts (MW).

Thus, EALB is to be the second bank to take part in the loan after National Bank of Egypt (NBE) has approved to pump US$ 60 million.

Banking sources told Amwal Al Gahd that loan’s final agreement will be within the upcoming few days after finishing promoting it.

Furthermore, power sector is one of the promising sectors for banks whereas NBE, Banque Misr, Piraeus Bank, Industrial Development & Workers Bank of Egypt, and Faisal Islamic Bank of Egypt have signed joint loan in favor of East Delta Eelectricity Production worth EGP 1.6 billion.

Moreover, NBE, BM, Commercial International Bank (CIB) ,QNB Al Ahli, Arab African Bank and FAISAL Islamic Bank of EGYPT aim at providing EGP 2 billion to launch South Helwan’s power plant in addition to EGP 1 billion to finance the new power plant in Assuit.