Back to the complete issue
Sunday, 27 May 2018

EGPC set to receive USD 850 mn in loans from local banking consortium to repay IOCs?

EGPC to set receive USD 850 mn in financing from domestic banking consortium to repay IOCs? The Finance Ministry has reportedly agreed to issue letters of guarantee for two loans to the EGPC worth a combined USD 850 mn, sources close to the matter tell Al Mal. The funding, which will be used to repay international oil companies, will take the form of three USD 250 mn, five-year facilities each coming from the National Bank of Egypt, Banque Misr, and CIB. CIB will loan the state oil company a further USD 100 mn, the story claims. Last week, the local press had reported EGPC was seeking some USD 550 mn in funding. EGPC is reportedly also receiving a USD 662 mn short-term credit facility from a consortium of international finance institutions. Central Bank Governor Tarek Amer had said earlier this month that Egypt plans to repay USD 850 mn to international oil companies, without giving a clear timeline. Sources had previously said that a USD 200 mn payment would be made in June.

Also from the energy sector: The government appears to be moving ahead with its push to have state companies pay outstanding electricity and gas bills, even if it means selling assets. The move, first reported by Enterprise last week after we spoke with Cotton & Textile Industries Holding Company CEO Ahmed Moustafa, gained steam over the weekend as Public Enterprises Minister Khaled Badawy reportedly met with Moustafa to talk about restructuring, according to AMAY.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.