The board of the Egyptian Chemical Industries Company (KIMA) will discuss on December 22 approval to take a USD 560 million loan to finance a new fertilizer factory called KIMA 2, a person familiar with the matter told Zawya. The total cost of building the new plant is expected to be USD 800 million.
Once the board approves the loan, the company will initiate discussions with a consortium of banks, the person said. Beltone Financial, which is advising on the loan, has already shortlisted banks. The loan is likely to have a tenor of 10 years.
KIMA, the majority state-owned company, has a paid-in capital of EGP 1.2 billion (USD 201 million). It produces fertilizer, ammonium nitrate, ferrosilicon and ice, packaging oxygen and silica dust.
Last month, KIMA signed a contract with Tecnimont of Italy for the refurbishment of its existing ammonia and urea plant, at a cost of EGP 3 billion (USD 560 million). The project involves switching the plant over to natural gas instead of electricity and doubling the capacity to produce Nitro Kima Fort fertilizer.
© Zawya 2011
