EgyptAir expected to sign EGP 5 bln loan with Banque Misr, NBE next month

Egypt’s national carrier EgyptAir is expected to sign a definitive agreement soon with two major lenders on a 10-year loan of 5 billion Egyptian pounds ($319.3 million) to pay loans and aircraft leases.

The company is finalising the financing terms with the National Bank of Egypt (NBE) and Banque Misr as they are expected to sign the loan within a month at maximum, sources with knowledge of the matter told Amwal Al Ghad on Sunday.

The Egyptian ministry of finance will guarantee the financing, a move aimed at helping EgyptAir withstand the impact of the COVID-19 pandemic.

NBE will act as the facility agent on the loan, while Banque Misr will be the security agent, the sources said.

The two banks will each contribute 2.5 billion pounds to the loan.

Egyptian government provided EgyptAir with 5 billion pounds in loans in 2020 due to the impact of the pandemic on its operations,

In March, Roshdy Zakaria, chief executive officer of EgyptAir Holding Co., told Bloomberg the airline is asking for 5 billion – 7 billion pounds in similar assistance this year.

Zakaria told reporters also in March that EgyptAir had been burning cash at a rate of about 500 million pounds a month, with about half as many flights in operation compared with before the COVID-19 pandemic. He added that there are no plans to downsize its fleet or place new aircraft orders.