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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.

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