NBE-NBAD alliance named financial advisor for Midor’s $1.4bn financing

Egypt’s state-owned Middle East Oil Refinery (Midor) has selected National Bank of Egypt and National Bank of Abu Dhabi as the financial advisors for a US$1.4-billion financing, a banking source told Amwal Al Ghad Monday.

The loan is designated to upgrade Midor’s refinery lab in Alexandria.

NBE, Egypt’s largest state-run bank, has formed a consortium with NBAD to apply for the financial advisor role on Midor’s financing, the source said.

Midor seeks to expand its Alexandria refinery lab’s capacity to produce around 245,000 tonnes of LPG, 1.3 million tonnes of high octane gasoline, 3.2 million tonnes of high quality jet fuel, 570,000 tonnes of coal, and 135,000 tonnes of sulfur, chairman Mohamed Abdel Aziz said in earlier statement.

Three consortia have offered to pitch for the financial advisor role on Midor’s financing; namely the National Bank of Egypt and the National Bank of Abu Dhabi (the winner), Banque Misr and HSBC, and Commercial International Bank and one of the foreign banks.

The winning consortium, NBE and NBAD will work on drafting the financing conditions and regulations before Midor starts to offer banks a new tender for the role of financing arrangers next November, the source added.