ERC signs $2.6b debt package for refinery

DUBAI — The Egyptian Refining Company (ERC) announced on Monday that it has signed a debt package of $2.6 billion to finance construction of its state-of-the-art $3.7 billion second-stage oil refinery in the Greater Cairo Area.

By (Staff Report)

Published: Tue 10 Aug 2010, 11:17 PM

Last updated: Mon 6 Apr 2015, 9:45 AM

The refinery will produce over four million tonnes of refined products per annum when completed, including 2.3 million tonnes of EURO V diesel, the cleanest fuel of its type in the world.

“We are delighted to announce the debt package for what we believe stands as one of the largest project finance deals ever assembled in Africa,” said Citadel Capital Managing Director Marwan Elaraby. “ERC has won outstanding backing from leading global institutions because it will have a notable effect on both Egypt’s economy and on the environment, particularly in the Greater Cairo Area. It has similarly enjoyed the full backing and support of the Government of Egypt and, in particular, of the Ministry of Petroleum.”

“That this project remained on track through the deepest financial crisis in living memory is a testament to ERC’s solid economic fundamentals,” added Citadel Capital Managing Director Ahmed El-Houssieny. “Iron-clad fundamentals and strong support from both legislators and regulators are exactly what financial institutions look for when considering which projects to back.”

The debt package includes $2.35 billion of senior debt and $225 million of subordinated debt. Institutions participating in the senior debt package include the Japan Bank for International Cooperation, Nippon Export and Investment Insurance the Export-Import Bank of Korea, the European Investment Bank and the African Development Bank. First drawdown under the senior debt facilities is expected in the coming two months. —

More news from Business