NBE, FAB, serve as fi­nan­cial ad­vi­sors to MIDOR deal to ob­tain $1.2bn from 3 Euro­pean banks

Loan term fund of 13.5 years, to fi­nance ex­pan­sion plans, in­crease re­fin­ing ca­pac­ity at com­pany’s plant in­vest­ments of $2.3bn

The Daily News Egypt - - News -

The Na­tional Bank of Egypt (NBE) and theAbu Dhabi First Bank (FAB) acted as fi­nan­cial ad­vi­sors to the Mid­dle East Oil Re­fin­ing Com­pany (MIDOR) deal for a loan worth $1.2bn from Cred­itA­gri­cole BNP Paribas, and CDP Casa De­positi e and CDP Casa De­positi e prestiti.

This fund was guar­an­teed and pro­vided by the Ital­ian Ex­port Credit Agency for 13.5 years, with the aim of fi­nanc­ing ex­pan­sion projects to in­crease the com­pany plant’s re­fin­ing ca­pac­ity, at an in­vest­ment cost of $2.3bn.

As for the Min­is­ter of Petroleum and Min­eral Re­sourcesTarek El-Mulla, he praised the con­tin­u­ous and con­struc­tive co­op­er­a­tion with the NBE, and the ef­forts ex­erted by the bank’s em­ploy­ees to meet all the bank­ing re­quire­ments for the Egyp­tian petroleum sec­tor.

El-Mulla said that the ex­pan­sion pro­ject at Midor fac­tory rep­re­sents a pos­i­tive leap in the strat­egy of the Egyp­tian petroleum sec­tor by con­tribut­ing to the de­vel­op­ment of re­finer­ies in Egypt to cover all the needs of the state of petroleum prod­ucts in or­der to reach the self-suf­fi­ciency stage of these prod­ucts.

Also ac­cord­ing to El-Mulla, the pro­ject aims to in­crease the plant’s re­fin­ing ca­pac­ity from about 100,000 bar­rels per day, to 160,000 bar­rels per day, and amend the petroleum prod­ucts’ ef­fi­ciency to match the Euro 5 spec­i­fi­ca­tions.

Con­cor­dantly, Hisham Okasha, chair­per­son of the NBE, said that co­op­er­at­ing with FAB to pro­vide fi­nan­cial ad­vice to Midor in this trans­ac­tion comes at a time when the two banks are con­tin­u­ing their role in sup­port­ing na­tional projects of good credit and eco­nomic fea­si­bil­ity to the coun­try’s econ­omy in all sec­tors, di­rectly and in­di­rectly, mainly oil sec­tor projects.

He in­di­cated the ea­ger­ness of the two banks to strengthen the state plans set by the Min­istry of Petroleum, which aims to mod­ernise the Egyp­tian re­finer­ies, ow­ing to their pos­i­tive im­pact on re­duc­ing the value of petroleum prod­ucts im­ports and in­creas­ing their ex­port op­por­tu­ni­ties, thus de­creas­ing the pres­sure on for­eign cur­rency state re­sources, which would also re­flect on the na­tional econ­omy’s strength, and the con­tin­u­a­tion of the state’s pol­icy of eco­nomic re­form.

Ac­cord­ing to Dalia Al-Baz, vice chair­per­son of NBE, the aim of NBE and FAB is to serve as fi­nan­cial ad­vi­sors to Midor and to pro­vide a va­ri­ety of in­te­grated bank­ing ser­vices, ei­ther by through funds or the nec­es­sary fi­nan­cial ser­vices to sup­port the na­tional econ­omy, which has suc­cess­fully se­cured fund­ing for Midor’s ex­pan­sion pro­ject.

She pointed out that the in­vest­ment cost of these ex­pan­sions is about $2.3bn, of which $1.2bn is cov­ered by the Euro­pean Bank­ing Al­liance, while the rest through share­hold­ers and the com­pany’s own re­sources.

Al-Baz stressed the con­tin­u­a­tion of the NBE sup­port of the Egyp­tian oil sec­tor by pro­vid­ing all the credit fa­cil­i­ties for the es­tab­lish­ment and de­vel­op­ment of the its projects, in par­al­lel with the nec­es­sary fund­ing to open let­ters of credit for the im­port of petroleum prod­ucts for con­sump­tion in the do­mes­tic mar­ket.

The Min­is­ter of Petroleum me­di­ates the lead­er­ship of banks and MIDOR

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