As part of its leading role in the Egyptian Islamic Banking Sector, the National Bank for Development (NBD) (DEVE) has signed the first syndicated financing agreement in accordance with the principles of Islamic Shari’a for the East Delta Company for Electricity production.
The deal came as part of NBD’s commitment to support the national economy in spite of the current circumstances the country is witnessing.
NBD is participating with 18.5% of the total financing amount equaling USD 110 million, which is being provided through a shari’a-compliant “mudarba” system over four years with the participation of Banque Misr, Egyptian Gulf Bank, Baraka Bank, Bank Audi and United Bank.
The syndicated financing agreement was signed at NBD’s headquarters and was attended by Eng. Gaber Dessouky, Chairman of the Egyptian Electric Holding Company, Eng. Hamdy Azab, Chairman and CEO of the East Delta Electricity Production Company, as well as top management of the banks participating in the syndicated financing agreement.
Nevine Loutfy, CEO and Managing Director of the National Bank for Development, stated “this agreement reflects the bank’s strategy to expand into infrastructure projects which are vital to the continued prosperity of the economy. This will be done through increasing our partnerships with public sector in order to provide the financing necessary for its projects, and at the forefront of this is the energy sector, which is a driving force for the entire economy.”
Nevine Loutfy added “I would like to extend my gratitude to all the partners who have exerted great efforts to ensure the success of the first Islamic financing agreement in accordance with the principles of Islamic Shari’a for public sector projects in Egypt. All participant banks have set a main priority to support the Egyptian Economy and took all possible steps to finalize this financing agreement which will open a new horizon for the starting of a fruitful cooperation for banks working in the Egyptian market to support development and service projects.”
Eng. Gaber el Dessouky, Chairman of the Egyptian Electric Holding Company, said “ we are extremely pleased with the success of our partnership with the National Bank for Development and its management of the agreement, paying attention to the minor details that arose since the deal was initiated and until it was closed. We hope that this is the first step towards more successful partnerships that serve the public.”
The financing will support the needs of the East Delta Electricity Production Company for parts replacements in the Shabab and Damietta stations, which are considered important and vital steps to increase the capacity of the national electrical grid.