KIMA Loan Agreement Signing Postponed To Q2, 2013

Five banks have delayed signing a US$ 423 million loan agreement with the Egyptian Chemical Industries Company (KIMA) from next March to Q2 of 2013 as all contracts have not signed yet after exchange rates have changed.

The National Bank of Egypt (NBE), Banque Misr, Commercial International Bank (CIB), Arab African International Bank (AAIB) will each contribute US$ 90 million to the loan, while Banque Du Caire will contribute US$ 63 million.

The loan will be used to finance the renewal of KIMA’s fertilizers factory and the construction of two lines for producing Ammonia and Urea powered by natural gas 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.

It is worth noting that National Société Générale Bank (NSGB) had earlier withdrawn from the banking consortium.