Citadel Heads For Biggest Gain In 5 Weeks On ERC Loan

By Yomna Yasser On Jun 10, 2012

Citadel Capital SAE (CCAP.CA), an Egyptian private equity firm, is poised for the biggest advance in five weeks after signing a renewal agreement for a $2.6 billion loan to finance the design, construction, and operation of the Egyptian Refining Compnay (ERC)’s US$ 3.7 billion Greenfield petroleum refining upgrade project in Mostorod area of Greater Cairo.

Shares of the Cairo-based company climbed 2.33% to close at EGP 2.63 on Sunday closing, heading for the biggest daily increase since May 6.

Citadel Capital met with lenders and Egyptian Prime Minister Kamal el-Ganzouri on June 7 to discuss the project, it said today in a filing to the Egyptian bourse. Financing for the $3.7 billion refinery is expected to close “soon,” Citadel said.