Egypt's HDB takes part in $41mln syndicated loan to finance Borg El-Arab pharmaceutical plant

The new factory will comprise two production units

  
An employee counts euro banknote in a bank in Cairo, Egypt March 10, 2016.

An employee counts euro banknote in a bank in Cairo, Egypt March 10, 2016.

REUTERS/Amr Abdallah Dalsh

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 HDB’s 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 HDB’s 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.

© 2020 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.