May 13 2012
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Five banks offer USD1bn loan to Egypt's Ethylco
The new plant will produce 400 kilo-tons per annum of ethylene and its derivatives. It will provide the ethylene feedstock to the second phase projects of the project, which includes production of styrene and polystyrene in addition to polyethylene.
The twin-currency loan will come to the company as USD 630 million and EGP 370 million.
The National Bank of Egypt (NBE) is expected to contribute USD 450 million, of which USD 270 million is in foreign currency. Banque Misr will contribute USD 225 million, including USD 135 million in foreign currency; the Commercial International Bank will chip in with about USD 175 million, including USD 105 million in foreign currency; Banque du Caire will provide USD 75 million, of which USD 54 million is in foreign currency; and the Arab International Bank (AIB) will contribute USD 75 million in foreign currency.
A source in the Egyptian Petrochemicals Holding Company (ECHEM) said Ethylco would have been exposed to large losses if it had failed to obtain a USD 208 million bridge loan this year. The board has approved a shareholders' guarantee for the bridge loan.
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