Banque Misr, CIB, Ahli United Seek Contributors To US$290 Mln Loan

A consortium comprised of Banque Misr, Commercial International Bank (CIB) and Ahli United Bank (Egypt) has started asking other banks to contribute to a long-term syndicated loan amounting to US$ 290 million. Sources said the loan will be offered to Egypt Hydrocarbon Corporation to finance the establishment of an ammonium nitrate factory in Ain Sukhna.

Sources noted that the loan arrangers asked some banks last week to contribute to the 10-year term loan which was requested by Egypt Hydrocarbon Corporation since October, 2009. Some of the banks said they wish to contribute to the loan, but they did not give a final approval till now because there is a dollar shortage in the Egyptian banking sector.

Establishing the ammonium nitrate factory is the first phase of the petrochemical complex that will be built by Egypt Hydrocarbon Corporation in Ain Sukhna at cost of US$ 3 billion.

The Royal Bank of Scotland, the financial adviser of the project, was in talks with a number of Egyptian banks in October 2009 to receive the required finance and conditioned that the loan shall be in dollar. The banks approved to provide such finance as they considered such project a profitable one.