CAIRO: The board of Egypt’s Orascom Construction Industries (OCI) approved the sale of LE 1.65 billion ($296.1 million) in 5-year bonds to finance acquisitions, the firm said on Wednesday.
The funds would also be used to refinance its balance sheet, OCI said in a statement released by the stock exchange.
The builder and fertilizer-maker, Egypt’s biggest listed firm, said it would call for an extraordinary shareholder meeting to approve the bond sale, without giving a date.
The bonds, which will be tradeable but not nonconvertible into shares, will be offered in public and private tranches, the statement said.
In March, Dutch chemicals group DSM said OCI had agreed to buy its fertilizer and melamine units for €310 million ($402 million).
OCI agreed to pay for the units on a cash and debt-free basis, Beltone Research wrote.
"The bond issuance will allow OCI to look for further acquisitions and working capital requirements, post closure of the DSM deal," Beltone wrote, citing previous management guidance.