United Bank Mulls Contributing To Loans For Steel, Ethylene Factories
United Bank considers contributing with EGP 200 million to the loans being arranged in the current period for Egyptian Steel Group and Egyptian Company for Ethylene, said Mohamed Ashmawy, chairman of the bank.
On the sidelines of the Regional Islamic Finance Forum held by the Central bank of Egypt today, Ashmawy said the United Bank mulls contribution with EGP 100 million to the loan being arranged for Egyptian Steel Group as well as EGP 100 million to the loan being arranged for Egyptian Company for Ethylene.
The National Bank of Egypt (NBE), Banque Misr, Commercial International Bank (CIB), Banque Du Caire and Arab International Bank (AIB) are the contributors to the loan.
60% of the syndicated loan is a dollar-currency segment amounting to US$ 750 million and 40% of which is a local-currency segment amounting to US$ 500 million. The loan will be used to finance the construction a complex of ethylene and polyethylene plants in Alexandria.
The National Bank of Egypt, Banque Misr and Banque Du Caire had earlier offered the Company a bridge loan with value of US$ 240 million which was directed to issue letter of credit for the Project’s contractor.
The US$ 1.250 billion loan will be secured through contributions from banks with the following values: NBE (US$ 450 million), Banque Misr (US$ 225 million), CIB (US$ 175 million), Banque Du Caire (US$ 75 million) and AIB (US$ 75 million).
