Banks Arranging Egyptian Potash Loan Sign Terms Sheet

The National Bank for Development (NBD), Bank Audi Egypt and Banque Misr, arranging an EGP 688 million loan for the Egyptian Company for Potash and Chemical Industries, have signed the terms sheet.

Sources said the banks are planning to meet with the company next month to amend the loan conditions and probably change the value of the finance especially after the dollar’s hike against the Egyptian pound as the company will use part of the loan in importing raw materials and machines.

Sources revealed that the Istisna and Ijara Islamic loan will be used to finance the establishment of a factory for fertilizers as the company plans to produce new kinds of fertilizers.

The loan arrangers target to ask Islamic banks and commercial banks that have Islamic banking licenses to contribute EGP 350 million to the loan.

It is worth noting that a consortium comprised of NBD, Bank Audi Egypt and Banque Misr won a bid to arrange the loan after fierce competition with a consortium comprised of the National Bank of Egypt (NBE), Banque Misr, Alex Bank, Crédit Agricole Egypt and National Société Générale Bank (NSGB).