Banque Misr Studies Guarateeing Egyptian Refining By US$ 130 mln

Banque Misr is currently studying the possibility of participating with US$ 130 mln in letters of guarantee (LG) and letters of credit (LC) which Egyptian Refining Company plans to open for both Egyptian General Petroleum Corporation and Citadel Capital; domestic investors with value to US$ 300 million, Mohamed Abbas Farid, vice president of Banque Misr, told Amwal Al Ghad.

Egyptian General Petroleum Corporation needs the letters of guarantee to cover its liabilities towards international institutions which are contributing in the establishment of a developed oil refinery.

As being shareholders in the company and providers of a loan in value to EGP 2.6 billion, financial institutions conditioned on Egyptian institutions offering letters of guarantee in case of increasing the investment cost in 4 years so as to cover the increase in the Company’s capital when needed.

Egyptian Refining Company is negotiating with seven banks namely; Commercial International Bank, Banque Misr, Banque du Caire, HSBC, Arab African International Bank, Ahli United Bank and Mashreq Bank to offer the coverage of the guarantee.

Citadel for Financial Consultations (Capital Capital), main company of Egyptian Refining Company, announced earlier that it has entered an advanced stage of securing loan package in value to US$ 2.6 billion from international institutions to finance the establishment of a developed oil refinery in Greater Cairo.

The project’s capital is US$ 1.13 billion and is being covered by international financial investors and institutions. Citadel Capital is sharing with US$ 150 million and Egyptian General Petroleum Corporation is sharing with 24% of the total capital of the project.