Egypt’s electricity holding inks $525mn loan with Afreximbank, 9 banks today

State-run Egyptian Electricity Holding Company (EEHC) is to sign Thursday a US$525-million funding contract with a banking consortium which includes the African Export-Import Bank (Afreximbank) and Bank ABC Bahrain.

The consortium encompasses the Afreximbank in addition to eight Egyptian banks; National Bank of Egypt (NBE), Banque Misr, the Commercial International Bank (CIB), Arab African International Bank (AAIB), Bahrain’s Arab Banking Corporation (ABC), Bank Audi Egypt, Egyptian Gulf Bank (EGB), and AlexBank.

The nine lenders intend to disburse the fund next week as per EEHC’s request, a senior banking source near from the talks told Amwal Al Ghad Thursday.

The loan is to go for paying contractor dues in favour of Orascom Construction and General Electric.

As part of the country’s Emergency Plan for the 2015 summer, the loan shall also fund the completion of four electricity projects, notably in Assiut – some 320km (200 miles) south of Cairo; and West Damietta – about 200km (120 miles) north of Cairo.

As pursuant to the contract, the source said EEHC would be given one year grace period and the loan would be paid back over five years.

The table below demonstrates the final shares of the nine banks participating in the US$525 million loan: