CIB Withdraws From Consortium Arranging Loan For National Port Said Steel Co.
The Commercial International Bank (CIB) has decided to withdraw from the consortium, comprised of the National Bank of Egypt (NBE), National Société Générale Bank (NSGB) and Bank Audi Egypt, which arranges EGP 1.1 billion loan for the National Port Said Steel Company (NPSS).
Sources said the bank decided to withdraw from the consortium due to the long term of finance which reaches nine years and because the bank objects to some of the loan conditions, but they declined to disclose these conditions.
The finance will be used to cover part of the investment cost of establishing a new iron factory in Ain Sukhna which is valued at EGP 1.6 billion.
The loan arrangers will meet in the upcoming period to decide whether to assign another bank instead of CIB or to provide the same value that CIB would have contributed with, which is EGP 150 million.
Amwal Al Ghad had earlier reported exclusively on January 23rd that a consortium comprised of NBE, NSGB, CIB and Bank Audi Egypt arranges a long-term syndicated loan for NPSS.
