National Port Said Steel To Secure EGP 1.1 Bln Loan From 4 Banks

The National Port Said Steel Company (NPSS) is seeking a long-term finance worth EGP 1.1 billion from a consortium comprised of four banks which are the National Bank of Egypt (NBE), National Société Générale Bank (NSGB), Commercial International Bank (CIB) and Bank Audi Egypt.

The finance will be used to cover part of the investment cost of establishing a new iron factory in Ain Sukhna which is valued at EGP 1.2 billion.

The new factory targets to produce 250,000 tons of steel and 250,000 tones of pellets. The Egyptian Steel Group plans to increase the capital of NPSS to EGP 550 million to provide the required finance for establishing the factory.

This move came consistent with the Egyptian Steel Group’s plan to produce 2 million tons of steel and pellets as well as seize 20% of the market share of steel production in Egypt through acquiring four factories in Beni Suef, Ain Sukhna, Alexandria and Port Said.

It is worth mentioning that Ahmed Abu Hashima, owner of Egyptian Steel Group, targets to secure Islamic finance worth EGP 1.070 billion from Banque Misr and Bank Audi Egypt to finance its new factory in Beni Suef. The seven-year term loan grants the company a grace period of two years and a repayment period of five years.