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 US’ JP Morgan and the local National Bank of Egypt (NBE) started asking banks to fund the deal in early May, after the two firms were appointed as lead arrangers on the deal in early April.

The deal is a pre-export loan, where banks provide funding for the delivery of exports to a pre-agreed buyer.