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Thursday, 22 April 2021

Evergrow is restructuring its debts

Egyptian fertilizer company Evergrow has signed a USD 400 mn loan agreement with a syndicate of 12 banks led by Mashreq Bank and the National Bank of Egypt (NBE), who acted as the facility arrangers, Hapi Journal reports, citing a company statement. Some USD 326 mn will be used to restructure previous debts Evergrow owes to the same banks, while the remaining USD 74 mn will finance the construction of the third phase of the company’s fertilizer plant in Sadat City, slated for completion within nine months.

Background: Evergrow faced financial difficulties following the EGP float, which significantly raised the cost of the plant’s third phase. In 2020, the company had sought a USD 312 mn loan from a syndicate of Egyptian banks, which had approved the facility last December. The consortium included NBE, Mashreq Bank, Banque du Caire, Arab African International Bank, HSBC, Arab Bank and Arab African International Bank, while Banque Misr, Suez Canal Bank, the Housing and Development Bank and EG Bank were planned to participate in the loan.

OTHER DEBT NEWS-

Real estate developer Inertia has signed a EGP 1.1 bn, eight-year Islamic financing agreement with Banque Misr for the development of the fourth phase of its EGP 66 bn Jefaira project in the North Coast, according to a statement (pdf). Lots of details in the statement if you want more.

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