Arab Finance: Ferrum Egypt is negotiating with four banks over securing a loan of EGP 1.8 billion for the construction of a silos factory in East Port Said, Al Borsa News reported, citing unnamed sources familiar with the matter.

The banks are namely, the Commercial International Bank (CIB), Banque Misr, National Bank of Egypt (NBE), and First Abu Dhabi Bank (FAB).

Banque Misr and CIB have shown interest in financing the project, while negotiations are ongoing with the National Bank and First Abu Dhabi Bank as they conduct due diligence before reaching the final financing offer, the sources revealed.

The project requires government approval of an advance purchase agreement, allowing the Ministry of Supply to buy 1.4 million tons of storage capacity at the local market price, which will facilitate the completion of financing procedures and project commencement.

The investment cost of the factory, set to cover an area of 52,000 square meters, is estimated at EGP 2.3 billion. It is aimed at localizing the silo industry in Egypt.

Ferrum Egypt plans to produce around 400,000 tons in storage capacity in the first year of operations, expanding to about 1 million tons by the fourth year.

The company intends to meet local demand for the first three years before exporting to European and African markets.

Established in February 2024 with EGP 100 million in capital, Ferrum Egypt has key stakeholders, including Poland’s Ferrum SA with a 50% share, the Egyptian Holding Company for Silos and Storage with 12%, Samcrete Investment Company with 26%, and East Port Said Development Company with a stake of 12%.

 

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