SAIB Withdraws From Consortium Financing Egyptian Steel Group

Société Arabe Internationale de Banque (SAIB) withdrew from the consortium arranging EGP EGP 1.07 billion loan for the Egyptian Steel Group, sources said.

The consortium is led by Banque Misr and Bank Audi Egypt and comprised of Egyptian Arab Land Bank (EALB) and United Bank. The loan arrangers are close to signing the definitive agreements of the loan that will be used to finance the establishment of a steel factory in Beni Suef, sources added.

The signing of the agreement was delayed because Istisna and Ijara financing forms are being implemented for the first time in the Egyptian market. This will encourage banks to expand in providing companies with Sharia-compliant finances, sources noted.

The Egyptian Steel Group had earlier received a bridge loan worth EGP 275 million from Banque Misr.

It is worth mentioning that the Group will be given seven-year term loan with a grace period of two years and repayment period of five years.