The Arab African International Bank (AAIB) has announced its contribution to the long-term financing, worth EGP 4bn, to Misr Petroleum and to the Petroleum Cooperative Society Company (COOP), both subsidiaries of the Egyptian General Petroleum Corporation (EGPC).
The financing aims to contribute to the payment of part of their obligations to EGPC resulting from the periodic purchase of petroleum products.
On Thursday, the bank signed contracts to conclude the syndicated loan, in cooperation with other major financial institutions.
The bank will act as the primary bookrunner and coverage underwriter, finance marketer, and guarantee agent for this loan.
The bank had previously been involved in granting the two companies long-term joint financing worth EGP 10bn in 2014 for the same purpose.
The bank also served as bookrunner, guarantor, and promoter for that loan.
Hassan Abdullah, AAIB CEO, said that financial institutions play a vital role in providing the necessary funding to support the energy sectors, including the petroleum sector, as an important source of energy and as the provider of raw material for many new, high-tech industries.
He added that this funding strengthens the role of the bank in supporting the energy sector, highlighting the bank’s participation in arranging a number of medium- and long-term loans for many major investment projects in 2017.
He pointed out that the bank was also the bookrunner and promoter for another EGP 18bn syndicated loan that was granted to the Egyptian Electricity Transmission Company (EETC).
In addition, the bank, together with a number of major banks operating in the Egyptian banking sector, granted the Egypt Electric Holding Company (EEHC) an EGP 19.4bn loan to finance part of the investment cost of the expansion plan of the company’s distribution subsidiaries.
Meanwhile, the bank has assumed the role of the first bookrunner, guarantor, and promoter of the syndicated loan worth EGP 13.5bn granted to EGPC in 2017, next to granting credit worth $25m and EGP 300m to another major oil company working in Egypt.