In 2017, the National Bank of Egypt (NBE) arranged and participated in syndicated loans amounting to EGP 85.7bn. The bank’s contribution to these loans amounted to EGP 30.6bn.
According to Yehia Aboul Fotouh, vice president, the bank’s success in managing many syndicated loans is due to its accumulated experience in arranging such types of loans and as a result of its strong network of relationships with local and foreign banks that have confidence in the NEB’s ability to complete and manage great transactions professionally.
In arranging such loans, he explained, the NBE relies on a capital base of more than EGP 93bn, which gives it the opportunity to inject large funds, either individually or through participation in banking alliances.
“The NBE pays close attention to the syndicated loans, as part of its keenness to carry out the role entrusted to it. It also deals with the financing of mega projects related to vital sectors, especially in the fields of industry, energy of all kinds, construction materials, contracting, food industries, real estate development, tourism, transport, and communications, which creates added value to the Egyptian national economy and provides a lot of jobs and push for development,” according to Aboul Fotouh.
Aboul Fotouh pointed out, in statements to Daily News Egypt, that the loan portfolio at the NBE reached about EGP 400bn in December 2017, of which was about EGP 32bn in loans for small and medium enterprises, and about EGP 42bn in retail loans.
According to Aboul Fotouh, the bank aims to achieve 15-20% growth rates in its various activities and business volume by the end of the current fiscal year in June 2018, except for small and medium enterprises, where the bank aims to expand its funding without limits.
According to Sherif Riyad, head of the bank credit group for corporate and syndicated loans, the syndicated loans managed by the NBE in 2017 were directed to many strategic sectors, the most important of which are the transport, construction materials, electricity, oil, and real estate development sectors.
Riyad explained that the success of the NBE in maintaining its leadership of the Egyptian and African banking market in the field of syndicated loans, according to an evaluation prepared by Bloomberg International, is due to the professional and fast performance and efficiency of employees in the sectors of the bank.
Last week, Bloomberg International named the NBE the best bank in the Egyptian banking market, on the African continent, and in the Middle East and North Africa region for syndicated loans.
The Bloomberg assessment of banks’ performance during 2017 revealed that the NBE was also ranked first in the Egyptian banking market and on the African continent for bookrunning the syndicated loans. It was ranked second in Africa for marketing, and third for coordinating the loans.
The NBE also was named fourth as a bookrunner, seventh across the Middle East and North Africa for coordinating, and tenth for marketing loans.