KIMA To Sign US$ 445 Mln Loan Contract By End-August

Arrangers of the US$ 445 million loan for the Egyptian Chemical Industries Company (KIMA) have finalized all the project’s studies. Most banks such as the National Bank of Egypt (NBE), Banque Misr and Banque Du Caire received the approvals to offer such finance.

Sources told Amwal Al Ghad that the loan contributors agreed with the company on the loan conditions, term and interest rate. The final agreement is expected to be signed after Eid al-Fitr or by the end of August.

NBE and Arab African International Bank (AAIB) will each contribute with US$ 100 million, CIB and Banque Du Caire will each contribute with US$ 75 million and National Societe General Bank (NSGB) will contribute with EGP 95 million to the syndicated loan.

The value of the finance was reduced from US$ 516 million to US$ 445 million, representing 56.4% of the project’s total investment cost, estimated at US$ 787 million including charges.

This loan is divided into a foreign-currency segment of US$ 224 million and a local-currency segment of US$ 221 million (=EGP 1.33 billion). The loan will be directed to finance the construction of two lines for producing Ammonia and Urea powered by natural gas in Aswan.