Elsewedy Electric secures EGP 2bn in Islamic financing

Daily News Egypt
4 Min Read

ADI Capital, the investment banking arm of Abu Dhabi Islamic Bank-Egypt, announced on Tuesday that it has successfully completed a joint Islamic financing arrangement of EGP 2bn for the benefit of companies affiliated to Elsewedy Electric.

The Islamic financing will be provided by a banking consortium led by Abu Dhabi Islamic Bank (ADIB). The financing will help the company and its subsidiaries expand activities, the statement read.

The participating banks in the loan deal are: ADIB, the initial main arranger, and financing and guarantee agent; Al Baraka Bank, the National Bank of Kuwait, MidBank, the Industrial Development Bank, the Agricultural Bank of Egypt, and the Egyptian Arab Land Bank.

The loan will be offered with a diminishing 8% interest rate, and it comes within the initiative of the Central Bank to finance the industrial sector.

ADI Capital acted as the sole financial advisor, escrow agent, and promoter for the transaction. Sarie Eldin & Partners acted as counsel for the lenders.

Elsewedy Electric is a leader in providing integrated power solutions in the Middle East and Africa, and it owns more than 31 industrial facilities, and operates in 48 countries around the world.

Mohamed Ali, CEO and Managing Director of ADIB-Egypt, said that the completion of this joint Islamic financing will contribute to supporting exports and advancing the growth of the Egyptian economy, by financing one of the leading Egyptian companies providing integrated energy solutions in the Middle East and Africa. It will also enhance the role of ADI Capital, as one of the leading companies in arranging Islamic syndicated finance in Egypt.

Ahmed El Sewedy, CEO and Managing Director of Elsewedy Electric, said: “We appreciate the cooperation with all partners in this process, which comes at a time when we are keen to achieve further growth across our markets in Egypt, the Gulf, and Africa, where the energy sector is one of the main sectors representing a major source of foreign investment and contributes a great deal to the gross domestic product.”

He added: “This financing comes within the framework of supporting the group’s plans for expansion and growth during the coming period, working to cover the industry’s needs of working capital, facilitating workflow and importing raw materials, in addition to consolidating our position in various markets and expanding in local and export markets in regional and international markets, This supports the country’s tendency to enhance local content, which raises the national gross domestic product.”

Hatem El-Demerdash, CEO and Managing Director of ADI Capital, confirmed that the company’s success in arranging this important deal enhances its position in the market for arranging Islamic syndicated finances in Egypt, expressing his pride in the confidence of a leading group such as Elsewedy Electric, with its influential role in the Egyptian and regional industry. Assigning the arrangement of its first co-financing to ADI Capital, as this co-financing supports the expansion plans of Elsewedy, one of the most important pillars of the Egyptian industry, which contributes positively to the growth of the Egyptian economy.

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