Bank lending commitments for the financing of Egypt’s $3.5bn Mostorod refinery project have been delayed until early July from their original deadline of mid-June according to a banker close to the deal.       

The commitments will be received within the next two weeks … It is usual for deals of this size to be delayed

Banker close to the loan deal

“I think the commitments will be received within the next two weeks,” said the banker. “It is usual for deals of this size to be delayed.”

Owned by the Egyptian Refinery Company (ERC), Mostorod will be Africa’s largest ever project financing.

ERC and its financial adviser, France’s Societe Generale, issued requests for proposals (RFPs) in late April to a club of 14-15 banks seeking around $1bn in commercial debt.

In addition to the 15 banks approached, Societe Generale and a group of ‘pathfinder’ banks, which will advise on the structure of the deals, are also likely to take part.  

The pathfinder banks are the UK’s HSBC, France’s Credit Agricole, Bank of Tokyo Mitsubishi and Egypt’s Commercial International Bank (CIB)

Along with the $1bn bank tranche, there will be two other commercial tranches which will be covered by export credit agencies (ECAs).    

The African Development Bank (AFDB) has already confirmed that it will be lending $225m to the project, with $25m of that coming as subordinated junior debt.

ECA-guaranteed tranches are provided over a 17-year tenor with commercial bank guarantees over 15-years.