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In Largest Syndication to be Covered from Local Banks Worth USD1.05 Billion

A consortium of four banks namely, National Bank of Egypt, Banque Misr, Arab African International Bank, and Banque du Caire arranged, underwrote and syndicated a facility for the Egyptian Nitrogen Products Company (ENPC).

The new expansions will place MOPCO at the forefront of the largest producers of nitrogen fertilizers in Egypt and the Middle East.

In the largest financing package to be fully covered by local banks in the history of the Egyptian banking sector, a consortium of banks comprising National Bank of Egypt, Banque Misr, Arab African International Bank and Banque du Caire, as Initial Mandated Lead Arranger, arranged and underwrote the necessary funding for the Egyptian Nitrogen Products Company, which is fully owned by Misr Fertilizers Production Company (MOPCO). The syndicated loan totaled USD1.05bn. National Bank of Egypt and Banque Misr had the largest share followed by Arab African international Bank and Banque du Caire.

The Initial Mandated Lead Arrangers have successfully marketed the facility and were joined by a large number of local, regional, and international banks including Commercial International Bank and National Societe Generale Bank as Senior Mandated Lead Arrangers and sub-underwriters; Bank of Alexandria, Audi Bank (Egypt and Lebanon), Credit Agricole Egypt, National Bank of Greece (Egypt and London), as well as National Bank of Abu Dhabi, as Mandated Lead Arrangers and sub-underwriters; Faisal Islamic Bank, Al Ahli united Bank Egypt and Bahrain, Al Watany Bank of Egypt, Egyptian Gulf Bank, United Bank, National Bank of Development, Union National Bank Egypt, and Arab Investment Bank as co-arrangers.

This transaction is symbolic of the strength and stability of the Egyptian banking sector in light of the current global financial crisis, whereas the loan was fully underwritten by a group of local banks and marketed successfully.

It is worth mentioning that the investment banks EFG-Hermes and Beltone Financial Holding acted as the financial advisors for the Egyptian Nitrogen Products Company for this deal.

The final loan agreements were signed on Wednesday, December 16th, 2009, allowing immediate finance withdrawal after fulfillment of previously agreed upon withdrawal conditions, expected before year end.

The main purpose of the loan is to finance ENPC's project to establish and operate a plant for the production of nitrogenous fertilizers (ammonia / urea) with a capacity of 3850 tons/day of urea and 2400 tons/day of ammonia, which is an extension project for MOPCO. The total investment cost is estimated at USD1.7 billion.

Upon completion of the project, MOPCO will become one of the largest producers of nitrogen fertilizers in Egypt and the Middle East with a capacity of 5775 tons / day of urea and 3600 tons / day of ammonia.