KIMA Loan Agreement Signing Postponed Till Company Raises Capital

Five banks, arranging a US$ 423 million loan for the Egyptian Chemical Industries Company (KIMA), delayed signing the loan agreement will the company raises its capital which stood at EGP 1.2 billion after the dollar’s value hiked against the Egyptian pound, sources at one of the banks said.

The loan arrangers are the National Bank of Egypt (NBE), Banque Misr, Commercial International Bank (CIB), Arab African International Bank (AAIB) and Banque Du Caire and they all have strong dollar liquidity; therefore, signing the loan agreement was not delayed because of a dollar shortage, sources added.

NBE, Banque Misr, CIB and AAIB will each contribute US$ 90 million, while Banque Du Caire will contribute US$ 63 million to the loan.

The loan will be used to finance the renewal of KIMA’s fertilizers factory and the construction of a new factory in Aswan with investment cost of US$ 787 million.

Amwal Al Ghad had earlier reported exclusively that the value of the loan was reduced from US$ 516 million to US$ 444 million and then to US$ 423 million.