NBE Signs Definitive Deal on Al-Watania Poultry’s EGP200 mln Loan

The National Bank of Egypt (NBE) has signed on a definitive loan agreement to provide EGP 200 million finance, compliant with the Islamic Law, for Al-Watania Poultry.

As pursuant to the funding deal, NBE will offer Al-Watania Poultry a Sharia-compliant loan via Murabaha funding system to finance the company’s expansions  including the purchasing of raw materials, machines and equipments within the current period, a source from the bank told Amwal Al Ghad.

The source further explained that Al-Watania Poultry had disbursed the first tranche of NBE’s loan at value of EGP one billion. The rest of the funding shall be provided later in accordance with a certain schedule.

Moreover, the source said NBE’s Islamic deposits are approaching one billion pounds, but the bank has no intentions to increase them within the upcoming period due to the fact that the loan-to-deposit ratio is low in the meantime due to the current market recession, sources noted.