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Sunday, 10 October 2021

New infusions of USD for state, banking system?

The Madbouly government is looking to raise USD 2 bn through a three-year syndicated facility, according to a Finance Ministry statement on Friday. The loan will include ESG and Islamic finance components, with the ESG tranche set to target green projects under the Finance Ministry’s green financing framework, Emirates NBD, which was appointed joint global coordinator, lead arranger and bookrunner along with First Abu Dhabi Bank (FAB), said in a statement. The Islamic financing tranche will go towards funding budget shortfalls.

This follows the government repaying a separate year-long, USD 2 bn facility which also included a small Islamic finance component arranged last September. That facility was also arranged through Emirates NBD and FAB, the ministry noted in the statement.

Another USD 1 bn in financing from Afreximbank? The African Export-Import Bank (Afreximbank) is currently in talks with four local banks over financing worth between USD 600 mn and USD 1 bn, Afreximbank’s head of intra-African trade and corporate finance, Ayman Elzoghby, reportedly told Al Mal. An agreement is expected to be reached soon, Elzoghby said on the sidelines of last week’s preparatory conference for the Intra-African Trade Fair 2021, without disclosing the names of the banks or the purpose of the financing. We’re reaching out to Afreximbank for comment and will report back with any updates.

Afreximbank has renewed its USD 500 mn loan with EGPC: The pan-African trade finance bank this year renewed financing worth some USD 500 mn to the EGPC, Elzoghby noted. The facility was disbursed by Afreximbank last year alongside the National Bank of Egypt (NBE), to help the state-owned energy company finance imports of crude oil and petroleum products.

IN OTHER DEBT NEWS-

  • The National Bank of Egypt is issuing EGP 4.5 bn-worth of letters of guarantee for the three companies working on the first phase of the high-speed national electric rail network that will connect Ain Sokhna to Alamein, according to Al Shorouk.
  • Suez Canal Bank will loan EFG Hermes consumer finance subsidiary Valu EGP 300 mn to finance the company’s lending programs, sources from the bank told Al Shorouk.
  • City Edge Developments could be in line for an EGP 1 bn loan from NBE and the Housing and Development Bank for a hotel project in Sheikh Zayed, sources told Al Shorouk.
  • Mountain View is in talks with Banque Misr for an EGP 5 bn facility to fund the real estate developer’s projects in East and West Cairo, Al Shorouk reported.

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