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Egypt’s 5 banks gives $521m loan to support power sector

Egypt’s 5 banks gives $521m loan to support power sector

CAIRO: Five banks have reached a final agreement on their shares in a US$521 million loan to support Egypt’s electricity sector, chairman of the loan arranger Banque Misr told Amwal Al Ghad on Sunday.
Mohamed Eletreby – Chairman of Banque Misr – said the banks contributing to the state-owned Egyptian Electricity Holding Company ( EEHC )’s syndicated loan will sign the agreement within the current week.
Upon the agreement, banking official revealed to Amwal Al Ghad that the banks’ shares in the loan would be; the National Bank of Abu Dhabi – NBAD (US$221 million), Bank Audi (US$90 million), Egyptian Gulf Bank (US$90 million), Banque Misr (US$60 million), and Banque Du Caire (US$60 million).
The loan aims to finance the national emergency plan for increasing electricity production before the summer of 2015, in which the consortium of General Electric and Orascom Construction takes part. The consortium is set to build up 8 units with 1000 megawatts for Assiut station.
Egypt has been facing an energy crisis for years, with power outages surging in the summer.
As pursuant to the agreement, Eletreby said EEHC would be given one year grace period and the loan would be paid back over four years.
The table below demonstrates the final shares of the five banks contributing to the Egyptian holding electricity company: