On
Sunday 7 April 2019, a banking coalition led by Banque Misr signed contracts a
contract to increase the syndicated finance provided to Al Sharkiyah Sugar Manufacturing
Company (Al-Nouran).
The
banking coalition includes Bank Audi, ADIB Egypt, Export Development Bank of
Egypt (EDBE), Arab Bank, Banque Du Caire, National Bank of Abu Dhabi - Egypt
(NBAD Egypt), Egyptian Arab Land Bank (EALB), the Industrial Development and
Workers Bank of Egypt (IDWB), Alex bank, and United Bank, Arab Fund for
Economic and Social Development, and the Islamic Corporation for the
Development of the Private Sector “ICD”.
The
syndicated finance will be allocated for repaying the investment cost for the
company’s plant and funding its working capital, as the total finance will
increase by EGP 1.35billion to EGP3.1billion.
The
total finance provided by the coalition will be allocated for resuming the
establishment of a beet sugar plant in Salihiya city, Al Sharqeya, with a
slicing capacity of up to 12,000 tonnes of beet per day, and a refining
capacity of 1,700 tonnes of sugar, as
the annual capacity rates will reach 235,000 tonnes in slicing, and
318,000 tonnes in refining.
The
coalition will increase the plant’s investment cost by EGP 3.1billion to reach EGP
5.8billion. Besides, a self-finance worth EGP 2.7billion was injected by the
company’s shareholders.
This
project bridges the gap between the supply and demand rates for white sugar of
a current estimate of 1million tonnes, which will, in turn, reduce imports and
increase foreign exchange reserves.
The fruitful cooperation between the participating banks and the
company's administration had a positive impact on resuming the establishment of
the plant as well as launching its operations in early March 2019.
Furthermore, bank Misr’s strategy
relies on having a role at the state’s sustainable development plans through
encouraging local investments and encouraging the local production in order to
reduce imports and achieve self-sufficiency, along with boosting the quality of
national industries.
