Exclusive: Banks’ Contributions To Suez Power Plant Loan

The banks, arranging the long-term syndicated loan for the East Delta Electricity Production Company (EDEPC), have agreed on the value which each bank will contribute to the EGP 1.6 billion loan.

Sources close to the matter said the National Bank of Egypt (NBE) will contribute EGP 810 million, Banque Misr will contribute EGP 400 million, the Industrial Development and Workers Bank of Egypt will contribute EGP 150 million, Piraeus Bank – Egypt will contribute EGP 140 million and Faisal Islamic Bank of Egypt will contribute EGP 100 million to the loan.

Such loan will be used to finance the establishment of four productive units at the Suez thermal power plant.

Banks are currently revising the final contracts of the loan, sources added, expecting the final agreement to be signed during the next month.

Amwal Al Ghad had previously reported that the East Delta Electricity Production Company received a bridge loan amounting to EGP 150 million to meet the prepayment requirements for the contractors who are assigned to establish the productive units. NBE and Piraeus Bank – Egypt each contributed EGP 75 million to the bridge loan.

The 12-year term syndicated loan has grace period of 3.5 years and repayment period of 8.5 years. The investment cost of the project is EGP 5 billion and will be met through loans from the African Development Bank and Islamic Development Bank as well as the syndicated loan arranged in Egypt.