Egyptian Cement Co seeks loan for Sohag plant

Egyptian Cement Co has entered into negotiations with a local banking alliance to obtain a loan of EGP4bn (US$221m) to partly finance the cost of its first plant and construction materials complex in Sohag province.

The alliance is made up of the National Bank of Egypt, Banque Misr, CIB and Arab African International Bank, sources told Al Mal newspaper.

The details of terms and conditions memorandum are being agreed upon in preparation for addressing other local banks to contribute to securing the loan, the sources added, noting the duration of financing is 10 years including a two-year grace period.

The company has acquired a cement licence out of seven offered by the Egyptian government. Production capacity of the plant is reported to be 2Mta.