The Arab African International Bank (AAIB) is arranging a loan in favour of Evergrow for Specialty Fertilizers, estimated at EGP 1.3bn, to be collected over eight years, according to statement by the bank.
The loan’s contributors are the AAIB, the National Bank of Egypt (NBE), and Abu Dhabi Islamic bank. The AAIB has been nominated as the mandated lead arranger, the NBE as the security agent, and Abu Dhabi Islamic Bank as the mandated lead arranger.
In a statement, the AAIB said its participation in the fund comes as a continuation of its role in organising and granting funds to Egypt’s main industrial sectors. It loan is towards boosting production and providing Egyptian youth with employment opportunities.
The bank added that obtaining final approvals and arrangement of the financing contracts are currently in progress. The funds will be used for Evergrow’s expansions in its factory complex located in Sadat city, with investments amounting to EGP 2bn, scheduled to begin in 2018.
The company aims to increase its production capacity so that potassium sulphate would reach 380,000 tonnes, chloride calcium would reach 190,000 tonnes and dicalcium phosphate would reach 60,000 tonnes annually. Evergrow added that this increase would be in order to help decrease the import of fertiliser elements.