EBRD approves USD 25 mn loan for Orascom Construction
The European Bank for Reconstruction and Development (EBRD) has approved a two-year USD 25 mn working capital loan to Orascom Construction (OC), according to the bank’s website. The loan aims to support the company’s working capital requirements, which have risen amid the covid-19 crisis, and is not tied to any specific project. The facility will improve OC’s financial resilience, ensuring the company has sufficient working capital and liquidity, the bank said. OC’s profits plunged almost 70% to USD 9.8 mn in 2Q2020 from USD 31.3 mn in 2Q2019, despite a marginal uptick in revenues.
UPDATE- 21 September 2020
Baker McKenzie acted as legal counsel to EBRD on the loan agreement.