Oriental Weavers secures $10mn loan from Bank Audi

Egypt’s rug manufacturer Oriental Weavers (OW) said, in a bourse statement Sunday it reached an agreement with Bank Audi to raise a medium-term credit facility worth $10 million.

According to the company, the loan will go for financing the purchase and operation of 11 looms.

Egyptian businessman Mohamed Farid Khamis, OW’s founder and chairman had revealed earlier that the group plans to add 11 new looms at a total cost of EGP 90 million.

OW plans to open two new plants (King Tut plants) within the upcoming five years at an expected investment cost of EGP 695 million, the top official said.

He added that his group has a five-year plan that includes the establishment of two plants: the first is scheduled to be opened late 2017 and the second in 2020.

The two plants will boost the group’s production capacity by nearly 48%, Khamis said.

He also asserted that OW targets an increase in sales to EGP 6 billion by the end of 2014, of which 65% will be exports.