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Five banks to underwrite EGP2.4bn loan to ramp up Egypt's cooking oil production

Sunday 09 September 2018 06:36 PM

National Bank of Egypt
National Bank of Egypt

By Mohmed Salem
Consortium made up of the five local banks of the National Bank of Egypt, National Bank of Abu Dhabi, Banque of Caire, the Arab Bank and Canal Suez Bank is set to clinch a EGP2.4bn loan with OILEX to finance a cooking oil complex  over 80,000 sqm in Sadat City's First Industrial Zone at EGP3bn investments.
"With NBE acting as the lead arranger and agent of the syndicated loan, the loan facility is distributed as folllows: up to EGP480mln is to be provided  by the National Bank of Abu Dhabi, EGP370mln by Banque Du Caire, EGP350mln by Arab Bank, and EGP200mln by Canal Suez Bank," informed sources told Al-Mal newspaper.
Of the syndicated loan, almost  EGP1bn will be extended using the revolving loan facility, a flexible financing tool that allows the borrower to repay or take the loan out again, whereas a remainder of EGP1.4bn will be a long-term loan with a seven-year tenor.
The industrial complex includes a plant for extracting vegetable oils at 4000 tonne capacity from soya beans and sunflower seeds as well as an oil refinery with 600 tonne capacity per day,  and a warehouse for storing seeds with 100,000 tonne capacity.
The complex's total capacity amounts to 1.440mln tonne per year, driving up Egypt's cooking oil production which stands currently at 500,000 tonne, according to chairman of OILEX Dr. Sherif Ziada.
Egypt imports 97 percent of its annual cooking oil needs which exceed 2.3mln tonne per year, according to Ministry of Agriculture data.