Egypt: Beltone Financial Holding, EFG-Hermes act as financial advisors in largest syndication to be covered from local banks
A consortium of 4 banks namely, National Bank of Egypt, Banque Misr, Arab African International Bank, and Banque du Caire arranged, underwrote and syndicated a facility for the Egyptian Nitrogen Products Company (ENPC).
The new expansions will place MOPCO at the forefront of the largest producers of nitrogen fertilizers in Egypt and the Middle East.
In the largest financing package to be fully covered by local banks in the history of Egyptian banking sector, a consortium of a group of banks comprising National Bank of Egypt, Banque Misr, Arab African International Bank and Banque du Caire, as Initial Mandated Lead Arranger, arranged and underwrote the necessary funding for the Egyptian nitrogen’s Products Company, which is fully owned by Misr Fertilizers Production Company (MOPCO). The syndicated loan totaled USD 1.05 billion. National Bank of Egypt and Banque Misr had the largest share followed by Arab African international Bank and Banque du Caire.
The Initial Mandated Lead Arrangers have successfully marketed the facility and were joined by a large number of local, regional, and international banks. The joining banks comprises of Commercial International Bank and National Societe Generale Bank as Senior Mandated Lead Arrangers and sub-underwriters; Bank of Alexandria, Audi Bank Egypt and Lebanon, Credit Agricole Egypt, National Bank of Greece Egypt and London, as well as National Bank of Abu Dhabi as Mandated Lead Arrangers and sub-underwriters; Faisal Islamic Bank, Al Ahli united Bank Egypt and Bahrain, Al Watany Bank of Egypt, Egyptian Gulf Bank, United Bank, National Bank of Development, Union National Bank Egypt, and Arab Investment Bank as co-arrangers.
This transaction is symbolic of the strength and stability of the Egyptian banking sector in light of the current global financial crisis, whereas the loan was fully underwritten by a group of local banks and marketed successfully. It is worth noting that the investment banks EFG-Hermes and Beltone Financial Holding acted as the financial advisors for the Egyptian Nitrogen Products Company.
The main purpose of the loan is to finance the ENPC's project to establish and operate a plant for the production of nitrogenous fertilizers (ammonia / urea) with a capacity of 3850 tons / day of urea and 2400 tons / day of ammonia, which is an extension project for MOPCO. The total investment cost is estimated at USD 1.7 billion
Upon completion of the project, MOPCO will become one of the largest producers of nitrogen fertilizers in Egypt and the Middle East with a capacity of 5775 tons / day of urea and 3600 tons / day of ammonia.
- Euromoney: EFG-Hermes is “Best Equity House in Egypt”
- EK Holding joins Abu Keir to establish fertilizer company
- First Gulf Bank acquires Dubai First
- Abraaj Capital closes largest private equity transaction in history of Middle East and North Africa
- Crédit Agricole Egypt Invests $ 5 million in Beltone Midcap Fund