Egypt's Evergrow signs $400mln loan to restructure debts

$74mln of loan will finance construction of fertilizer plant in Sadat City

  
Image used for illustrative purpose. Egyptian specialty fertiliser and chemical producer Evergrow is investing in two new projects between 2019 and 2023

Image used for illustrative purpose. Egyptian specialty fertiliser and chemical producer Evergrow is investing in two new projects between 2019 and 2023

Evergrow handout via Thomson Reuters Projects
 
RIYADH: Egyptian fertilizer company Evergrow has signed a $400 million loan agreement with a syndicate of 12 banks led by Mashreq Bank and the National Bank of Egypt (NBE), who acted as the facility arrangers, Asharq reported citing a joint statement on Wednesday.

The plan consists of $326 million that will be used to restructure previous debts Evergrow owes to the same banks, while the remaining $74 million will finance the construction of the third phase of the company’s fertilizer plant in Sadat City, slated for completion within nine months.

The financing is one of the largest dollar loans granted by banks to private sector companies in the Egyptian market in the field of potassium fertilizers during the past 10 years.

The deal is part of Evergrow’s financial reform program sponsored by the Central Bank of Egypt.

The new funds will help raise the annual production capacity of all the company’s products from 817,000 tons currently to 1.15 million tons annually, said Evergrow Chairman Mohamed El Kheshen.

Egypt’s Minister of Trade and Industry Neveen Gamea in March said that Egypt aims to increase its exports — especially to EU, African and Arab markets — to $100 billion, through the implementation of a strategic plan.

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