Egyptian Electricity Holding gives nod to nine banks’ $1.26bn loan offer

State-run Egyptian Electricity Holding Company (EEHC) has approved a loan offer worth 10 billion Egyptian pounds (US$1.26 billion) from a consortium of 10 banks.

The loan is dedicated to fund the establishment of three power plants, which locate in Beni Suef Governorate, Burullus area in Kafr el-Sheikh Governorate, and the new administrative capital.

Meanwhile, the consortium encompasses ten banks are; National Bank of Egypt (NBE), Banque Misr (BM), Commercial International Bank (CIB), QNB Alahli, Arab African International Bank (AAIB), Bank Audi Egypt, AlexBank, Egyptian Gulf Bank (EGB), Ahli United Bank, and National Bank of Abu Dhabi (NBAD).

The following table demonstrates the banks’ contribution to the loan:

As pursuant to the banking offer, the source near from the talks told Amwal Al Ghad that the Egyptian Electricity Holding would be given a three-year grace period and the loan would be paid back over 15 years.

EEHC has agreed with German giant Siemens alongside three major local firms so as to build three power plants working upon the combined-cycle system, with total capacity of 14,400 megawatts in Beni Suef, Burullus, and the new administrative capital.

Egypt has been facing an energy crisis for years, with power outages surging in the summer. The peak was during last summer, when power cuts were the most frequent.