Egypt’s Edita Food Industries has announced that it has signed a medium-term loan contract, worth EGP 90m, with the National Bank of Kuwait (NBK) to finance the company’s capital expenditures in Egypt.
In a statement sent to the Egyptian Exchange (EGX) on Sunday, the company said that the loan comes with a seven-year term. It also comes as part of the Central Bank of Egypt (CBE) initiative to support Egyptian companies at reduced interest rates.
Menna Shams El Din, Director of Investor Relations at Edita Food Industries, said that the loan will be used to finance the development of production lines. It will also go towards financing the necessary maintenance to ensure the efficiency and quality of the company’s products.
Edita is expecting to gain a larger market share specifically in the bakery and wafer segments, with further capacity expansions and new innovations and products in the pipeline.
The company expects to reap the fruits of the recent investments in logistics, marketing, and new lines in 2021 and 2022. Its dividends distribution strategy is to maintain a dividend pay-out ratio of 35-50%.