Al Baraka Seeks To Inject Sharia-Compliant EGP 100 Mln To MAF Loan

Al Baraka Bank Egypt conducts negotiations with the National Bank of Egypt (NBE) and Banque Misr to contribute EGP 100 million to the EGP 3 billion syndicated loan for Majid Al Futtaim Holding (MAF Holding).

NBE and Banque Misr have given initial approvals to Al Baraka Bank to offer the loan in compliance with Islamic Sharia law, but the customer shall approve to receive such segment of the loan in compliance with Islamic banking transactions, sources said.

The 10-year term loan will be used to finance the establishment of Mall of Egypt in Sixth of October City. Banks will finance 61% of the investment cost of the project which is valued at EGP 4.9 billion.

Al Baraka Bank Egypt has also recently approved to inject EGP 75 million to the Islamic syndicated loan worth EGP 620 million arranged by the National Bank for Development (NBD) for the East Delta Electricity Production Company to finance the importing of turbine spare parts.