Egyptian Petroleum seeks $900m loan

01 September 2009

Egyptian oil firm has appointed Bank of Tokyo Mitubishi to arrange loan

The Egyptian General Petroleum Corporation (EGPC) is currently in talks with banks to raise finance a $900m loan facility, which is being arranged by Bank of Tokyo Mitsubishi.

The deal is structured as a pre-export facility, where the banks provide financing to enable an exporter to sell products for which it has already arranged a buyer. Banks are being asked to provide $100m with fees of 150 basis points, and a margin of 350 basis points above the London interbank offered rate.

Last year state-owned EGPC raised $300m in a loan that was underwritten by France’s Calyon. EGPC is controlled by the Ministry of Petroleum.

Egypt’s Al Ezz Steel Rebars, the largest steel producer in the region, is also currently seeking a £E2bn ($362m) loan to finance a new reduced iron plant.

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