The National Bank of Egypt (NBE), Credit Agricole Egypt, Faisal Islamic Bank of Egypt, and the Suez Canal Bank agreed to provide a long-term syndicated loan of €30m to Midor Electricity Company, also known as MidElec.
Hisham Okasha, Chairperson of NBE, said the arrangement of this loan comes in light of the participating banks’ strategies to provide necessary funds for energy projects in local and foreign currencies because of their importance in advancing development and supporting the Egyptian economy.
Okasha emphasised the ability of participating banks to arrange this type of loans and meet the financing needs of various sectors of the Egyptian economy, including the energy sector.
Yehia Aboul Fotouh, Vice Chairperson of NBE, said the each of NBE and Credit Agricole contributed €12m in the financing deal, while the Suez Canal Bank and Faisal Islamic Bank contributed €3m each.
He pointed out that the duration of the financing is nine years, comprising two-year disbursement period and seven-year repayment.
Sherif Riyad, head of corporate loans at NBE, said the loan aims to contribute to financing part of the investment cost for expanding MidElec power station by providing a new gas turbine with a capacity of 50 MW.
He pointed out that MidElec power station is the main power supplier to its oil refineries that provide the country with its needs of petroleum products.
The MidElec power station consists of three turbines with a maximum capacity of 183 MW.