Financing for Egyptian Refining Company’s (ERC) Mostorod complex near Cairo is expected to reach financial close in November once a new equity investor has finalised their participation in the project.
The $3.7bn refinery, sponsored by the local Citadel Capital, lined up $2.65bn of bank finance earlier this year, but the participation of several equity investors owned by the Egyptian government was delayed when the regime of Hosni Mubarak was toppled in early February.
ERC has continued to pay commitment fees on the bank finance to ensure it remains in place, while the state-owned equity seek final approval from the transitional government to invest in the project (MEED 15:07:11). During this time, a new equity investor has become involved in the scheme and is currently conducting due diligence on the project.
“We are still on track to close before the end of the year, but we hope to be able to get there by early November,” says one source close to the deal.
The Mostorod refinery will be owned by a consortium of local public investors, the privately owned Citadel Capital, the Egyptian General Petroleum Corporation and a group of international development institutions.