A syndicate of Egyptian banks has signed a long-term syndicated facility worth $119.4m for Flex PET Egypt to finance the second phase of its manufacturing plant in the Ain Sokhna industrial zone.
The lending group is led by QNB Egypt, acting as the initial mandated lead arranger, facility agent, security agent, and account bank. Commercial International Bank (CIB) and alBaraka Bank Egypt joined the consortium as initial mandated lead arrangers. The financing is earmarked for the construction of an extension to the factory’s first phase for the production of polyethylene terephthalate (PET) with a planned capacity of 600 tonnes per day.
Flex PET Egypt, a subsidiary of the global UFlex Group, will also use the facility to support its working capital requirements. The project aims to meet growing demand for high-quality PET used in bottle manufacturing while enhancing local production capabilities.
The agreement was signed by Mohamed Khairat, Assistant CEO and Head of Business Sectors at QNB Egypt; Mahmoud Elbendary, Senior Vice President of the Corporate Relations Group at CIB; Moustafa Alarousi, Deputy CEO of Corporate Credit and Investment at alBaraka Bank Egypt; and Sanjay Tiku, Managing Director of Flex PET Egypt.
Mohamed Bedier, CEO of QNB Egypt, said the loan represents a significant step in bolstering the Egyptian industrial sector. “We believe in the importance of financing major industrial projects that contribute to job creation, increase local production, and meet the needs of domestic and foreign markets,” Bedier said. He added that the partnership demonstrates the Egyptian banking sector’s capacity to provide innovative, multi-currency financing solutions for large-scale industrial projects.
Amr El-Ganainy, Vice President and Executive Board Member at CIB, noted that the expansion is a “pivotal step” toward localising intermediate industries and reducing reliance on imports. He stated that the project aligns with sustainability standards and will enhance Egypt’s export capacity, supporting the balance of payments and foreign currency inflows.
Sanjay Tiku, Managing Director of Flex PET Egypt and Chairperson of Flex Egypt Group, said the 600-tonne daily capacity expansion is central to UFlex Group’s strategy to diversify its product range and expand its global market share. He emphasised the group’s commitment to increasing investments in Egypt to drive economic growth.
Hazem Hegazy, CEO and Vice Chairperson of alBaraka Bank Egypt, remarked that the project supports Egypt’s 2030 vision to deepen local manufacturing and enhance the competitiveness of Egyptian products. He added that the project aligns with sustainability goals by supporting more efficient production chains and reducing environmental impact.
