ElSewedy’s United Metals secures USD 25 mn in funding from EBRD
ElSewedy’s United Metals Company subsidiary lands USD 25 mn loan from EBRD: The European Bank for Reconstruction and Development (EBRD) has agreed to provide to ElSewedy’s subsidiary United Metals Company (UMC) a two-year, USD 25 mn facility to finance the company’s working capital needs and provide funding to source raw materials amid the covid-19 disruption, the European lender said on its website yesterday. The finance will also be geared towards improving UMC’s engagement, recruitment and integration of disabled workers, EBRD said.
United Metals Company is 99.8% owned by El Sewedy Electric and had received a previous EBRD facility in 2017, according to the European lender’s statement, and another in 2019.
The company had been feeling the crunch of the global commodities boom, which drove up the price of a key production input, copper cathodes, in 2H2020. Prices have spiralled since the global pandemic erupted, with the futures price of copper more than doubling since March 2020, reaching a record high in May thanks to widening supply-demand gap that is likely to continue for some time, market strategists say.