Suez Canal Economic Zone signs EGP 10 billion syndicated loan deal with six banks

Suez Canal Economic Zone (SCZone) signed on Sunday a long-term syndicated loan agreement worth 10 billion Egyptian pounds ($636.7 million) with a consortium of six banks operating in Egypt.

The consortium was led by the National Bank of Egypt (NBE) as the senior mandated lead arranger, facility agent, and bookrunner.

The consortium includes Banque Misr as the senior mandated lead arranger and book-runner as well as the Arab African International Bank (AAIB), Commercial International Bank-Egypt (CIB), Banque du Caire, and Suez Canal Bank as lead arrangers.

The funding will be used to resume the development of infrastructure and utilities at industrial zones and ports affiliated to the SCZone, said SCZone chairman Yehia Zaki in a statement.

Some of the key projects at the SCZone will be complete within two years as part of the strategic objectives for 2020-2025, Zaki added.

The 10-year funding includes a first tranche worth 5 billion pounds and a second tranche worth $320 million.

The NBE will contribute 44.5 percent or 3 billion pounds and $92 million to the funding, while Banque Misr’s commitment amounts to 40 percent or 2 billion pounds and $128 million.

AAIB, CIB, and Banque du Caire will each contribute $30 million, while Suez Canal Bank will provide $10 million.