The Housing and Development Bank (HDB) has joined a banking alliance to provide a EGP 650m syndicated loan to finance the establishment of a pharmaceutical factory in Borg El-Arab city, Alexandria.

The alliance also includes the Export Development Bank of Egypt (EBE), Egyptian Arab Land Bank (EALB), Industrial Development Bank (IDB), and the Suez Canal Bank (SCB).

HDB Chairperson and Managing Director Hassan Ghanem said that the co-financing contract goes for the benefit of Vetopharm International for Pharmaceuticals and Chemicals. The new pharmaceutical factory will comprise two production units, the first of which specialises in the production of all pharmaceutical drugs and medical preparations. The second specialises in the production of biological medicines.

According to Ghanem, the HDBs share in the syndicated loan stood at EGP 120m, while the total investment cost of the project is about EGP 1.1bn. The loan period is seven years.

Ghanem emphasised that, as part of the HDBs expansion strategy for the coming period, the bank aims to expand in corporate loans to encourage national investments and meet local financing needs. This is especially aimed at the economic sectors that have the greatest impact on the growth of the Egyptian economy.

This falls in line with the state’s plan to raise the capabilities of vital sectors and create new job opportunities in various fields. Ghanem praised the effective and fruitful cooperation between the participating banks, which reflects the strength and solidity of the Egyptian banking sector.

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