Egyptian Electricity Holding to sign multi-billion pound loan deal this week

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The state-run Egyptian Electricity Holding Co. will sign this week a syndicated loan deal worth 37.4 billion Egyptian pounds ($2.1 billion) with a consortium of five local banks.

The consortium comprises the National Bank of Egypt (NBE) and Banque Misr as lead arrangers in addition to the Commercial International Bank (CIB), Arab African International Bank (AAIB), and QNB Alahli Bank, sources with knowledge told Amwal Al Ghad on Sunday.

The loan, guaranteed by the Ministry of Finance against risks of going into payment default, will go for financing the EEHC and affiliates’ needs, the source added.

EEHC’s subsidiary Egyptian Electricity Transmission Co. (EETC) will get 18 billion pounds of the total loan, the source said.

The loan will be paid over 15 years, including a three-year grace period and drawdown, he added.

The Egyptian Electricity Holding Co. is one of the country’s biggest borrowers, receiving facilities and loans worth more than 60 billion pounds in the last two years, to finance building a number of power plants.