A banking alliance including the National Bank of Egypt (NBE) and nine other banks signed an agreement with the Egyptian Electricity Holding Company (EEHC) for EGP 10bn as contribution to fund the establishment of three electrical power plants.
The proposed contract signed on Sunday is one of the largest funding ventures that the banks have conducted with the electricity sector.
The funding period is to last 15 years, including three years in which EEHC is allowed to withdraw money from the fund, while the repayment would begin during the next 12 years. The three plants are needed to produce 14,400 megawatts of electricity.
According to NBE Deputy Chairman Mahmoud Montaser, this fund comes as an additional sign of the continuous keenness of the banking sector to support the energy sector as one of the most important vital sectors needed for encouraging development.
Montaser said the banking alliance that won this deal includes NBE as lead arranger, Banque Misr, Arab African International Bank, Commercial International Bank (CIB), and Qatar National Bank (QNB), all with equal shares of EGP 1,590bn each.
The alliance also includes the National Bank of Abu Dhabi (NBAD) and Ahli United Bank, who will each contribute EGP 500m.
Egyptian Gulf Bank, the Bank of Alexandria, and Audi Bank will each contribute EGP 350m.
The electricity sector has successively secured the needed external funds, estimated at about €3.9bn, to finance the foreign components of these plants through three international banks: HSBC, KFW IPEX, and Deutche Bank.