Egyptian Arab Land Bank participates in $521mn-loan for Egypt Electricity

Egyptian Arab Land Bank has approved participating with US$20 million in a US$521 million-loan for the Egyptian Electricity Holding Company (EEHC), vice chairman Adnan El-Sharkawi said Tuesday.

El-Sharkawi stated that bank’s foreign investments provide the dollar liquidity that enables it to participate in loans issued in the local market.

Egyptian Arab Land Bank is currently studying contributing in a US$ 150 million-loan arranged by National Bank of Abu Dhabi (NBAD) for Assiut Oil Refining Company (ASORC).

On other hand, Banque Misr (BM) has arranged a loan for EEHC worth US$521 million, participating with US$60 million, with other five banks the National Bank of Abu Dhabi – NBAD (US$221 million), Bank Audi (US$90 million), Egyptian Gulf Bank (US$90 million), and Banque Du Caire (US$60 million).

According to BM’s chairman Mohamed Eletreby, EEHC would be given one year grace period and the loan would be paid back over four years.

The loan aims to finance the national emergency plan for increasing electricity production before the summer of 2015, in which the consortium of General Electric and Orascom Construction takes part. The consortium is set to build up 8 units with 1000 megawatts for Assiut station.