Banque Du Caire To Join Consortium Financing South Helwan Power Plant

Banque Du Caire plans to join a consortium as one of the main arrangers of the EGP 3 billion loan arranged by the National Bank of Egypt (NBE), Banque Misr, Commercial International Bank (CIB), National Société Générale Bank (NSGB), Arab African International Bank (AAIB) and Faisal Islamic Bank of Egypt for South Helwan Power Plant.

Sources said the loan arrangers have given in-principle approval to the bank to join the consortium but not before signing the initial loan agreements with the company.

There are a number of banks planning to contribute to the loan after it is marketed such as the Industrial Development and Workers Bank of Egypt.

The power plant will operate three natural gas-run steam turbines and will be connected to the national power grid to meet the rising demand for electricity.

OPEC (Organization of the Petroleum Exporting Countries) has approved to offer US$ 50 million finance and Islamic Development Bank (IDB) also approved to offer an additional loan worth US$ 250 million to finance the power plant. The establishment cost of the South Helwan Power Plant is 13 billion.

The electricity sector is one of the top sectors financed by banks after 2011’s revolution. The East Delta Electricity Production Company received loan worth EGP 1.6 billion from the NBE, Banque Misr, Piraeus Bank Egypt, Industrial Development Bank of Egypt and Faisal Islamic Bank of Egypt to finance the establishment of four productive units at the Suez thermal power plant. The company also received loan worth US$ 110 million from the National Bank for Development (NBD), Banque Misr, Egyptian Gulf Bank, Al Baraka Islamic Bank of Egypt, Bank Audi Egypt and United Bank Egypt to finance the importing of turbine spare parts, in addition to EGP 4.6 billion loan.