05 December, 2019

Egypt's Qalaa Holdings completes equity infusion in mega refinery project

$1.4 billion is the equity component of $4.4 billion Egypt Refining Company (ERC) project

Image used for illustrative purpose. oil refinery industry plant along twilight morning.

Image used for illustrative purpose. oil refinery industry plant along twilight morning.

Gettyimages

05 December 2019

Egyptian investment company Qalaa Holdings has completed its equity infusion in Egypt Refining Company (ERC), the company's chairman said.

The $4.4 billion refinery project is financed by $1.5 billion of equity and $2.9 billion of debt.

Ahmed Hiekal told Thomson Reuters Projects that company has completed the $1.5 billion equity financing while the project's debt component is on track for completion in December.

"The last package of debt totalling $76 million from Japan Bank for International Cooperation (JBIC) and Export and Import Bank of Korea (KEXIM) will be closed by 21 December, which will help ERC achieve financial close with $2.9 billion in debt financing," he said.

He said the company is studying increasing the refinery's annual production capacity from existing 4.7 million tonnes to 5.5 million tonnes in 2021.

As of October 2019, ERC has produced over one million tonnes of refined products including 480,822 tonnes on law sulphur European spec diesel, 165,713 tonnes of naphtha, 88,651 tonnes of high-octane gasoline and 11,345 tonnes of jet fuel, according to a company press statement.

Qalaa Holdings has a 13.1 percent stake in ERC.

(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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