Egyptian banks agree $400mn loan for two plants
Six lenders provide financing for projects in South Helwan and Assiut.
A syndicate of six banks has concluded Egypt’s largest ever electricity sector financing for a pair of power plants that will generate a combined 2,500MW.
Led by National Bank of Egypt (NBE), the banks will provide EGP 3bn ($405mn) to fund the plants in South Helwan and Assiut, business news website Amwal Al Ghad reports.
Banque Misr, Arab African International Bank (AAIB), Commercial International Bank (CIB), Faisal Islamic Bank of Egypt, Qatar National Bank Al Ahli (QNB Al Ahli) were the other five banks to sign a loan with state-run Upper Egypt Electricity Production Company (UEEPC), an affiliate of the Egyptian Electricity Holding Company.
Two thirds of the loan will finance the huge South Helwan project, which will produce 1,950MW from three 650MW units, while the remaining funds were allocated to the 650MW Assiut plant.
Upper Egypt Electricity Production Company will have a grace period of up to 4 years on the funding, while payments on the loans will be made over a 12-year period, Amwal Al Ghad said.
NBE was the single largest contributor to the package with EGP 1.1bn while Banque Misr, AAIB and CIB loaned EGP 500mn each.
Faisal Islamic Bank of Egypt and QNB Al Ahli contributed EGP 200mn to the deal.