The Egyptian Company for Ethylene and Derivatives (Ethylco) is set to sign a syndicated loan valued at USD 1.25 billion this April, a bank official told Zawya.
"Primary syndicated loan financers include the National Bank of Egypt, Misr Bank, Commercial International Bank (CIB), Banque du Caire and Arab International Bank. Approvals and authorization of all parties are expected to be concluded within this month. The total loan sum will be disbursed in both USD and EGP at the ratio of 60% and 40% respectively," said Tarek Al-Khouly, director of the Joint Loans Department, National Bank of Egypt (NBE).
In May 2012, Zawya had published an article announcing the approval of a number of Egyptian banks to grant the Egyptian Company for Ethylene and Derivatives a loan for the construction of an ethylene and polyethylene complex at the governorate of Alexandria, at a cost of USD 1.427 billion. The production capacity of this new project is set to stand at 400,000 tons of ethylene and derivatives and aims to avail the required ethylene for projects pertaining to the second phase of the national petrochemicals plan. The cost of the plan is estimated at approximately USD 4 billion and includes other projects for the production of styrene and polystyrene, in addition to polyethylene.
A number of other banks have also given their approval to enlist in the project, including the National Bank of Abu Dhabi, Egyptian Gulf Bank, United Bank and Societe Arabe Internationale de Banque (SAIB). Additionally, the approval of yet another group of banks is anticipated in the near future, a source said on condition of anonymity as he is not authorized to speak to media.
The ownership structure of Ethylco is divided into 51% to Petrochemicals Holding Company and its subsidiaries - Sidi Kreir and GASCO; 21% to Ahli Capital - the investment offshoot of the National Bank of Egypt; 9% to Misr Bank, 9% to National Investment Bank and 10% to Naser Social Bank and other investors.
Zawya 2013
