Oil company raising money to fund exports
Egyptian General Petroleum Corporation (EGPC) has received a strong response from banks for the funding of its $2bn five-year loan facility.
Banks interested in funding the deal had been given until mid-June to respond to the financing request, but many now expect their indicative commitments to be scaled back as a result of the success of the deal.
Banks were asked to commit up to $200m to the deal, but the final amounts they are allocated in the deal could be under $150m.
The deal pays a margin of 275 basis points above the London interbank offered rate (Libor).
The deal is a pre-export loan, where banks provide funding for the delivery of exports to a pre-agreed buyer.
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