Five banks offer loan of US$1 bln to Egypt's Ethylco

14-May-12

Five Egyptian banks have agreed to a US$ 1 bln loan to the Egyptian Company for Ethylene and Derivatives (Ethylco), to build an ethylene and polyethylene complex in Alexandria with a project value of US$$ 1.427 bln, as reported in Zawya. The new plant will produce 400,000 tpa of ethylene and its derivatives. It will provide the ethylene feedstock to the second phase projects of the project, which includes production of styrene and polystyrene in addition to polyethylene.The twin-currency loan will come to the company as US$630 mln and EGP 370 mln. The National Bank of Egypt (NBE) is expected to contribute US$450 mln, of which US$270 mln is in foreign currency. Banque Misr will contribute US$225 mln, including US$ 135 mln in foreign currency; the International Commercial Bank (ICB) will chip in with about US$175 mln, including US$105 mln in foreign currency; Banque du Caire will provide US$75 mln, of which US$54 mln is in foreign currency; and the Arab International Bank (AIB) will contribute US$75 mln in foreign currency. National Societe Generale Bank (NSGB) is considering participating in the facility