1.8 billion EGP loan for EGAS to boost gas production

CAIRO – 14 May 2017: Emirates NBD bank announced that it is taking part in a 1.8 billion EGP syndicated loan in favor of the state-owned Egyptian Natural Gas Holding Company (EGAS) to help boost gas production in Egypt, the bank said on Sunday.

Emirates NBD’s contribution amounts to EGP 220 million in the five year syndicated deal, with Banque du Caire as the Initial Mandated Lead Arranger. The loan is provided by eight major banks including Emirates NBD.

The funds will be used by EGAS to initiate newly discovered gas projects across Egypt. This includes the Zohr field, the largest gas field in the Mediterranean with an estimated 850 billion cubic meters of gas, as well as projects in North Damietta on the East Nile Delta, according to a statement from Emirates NBD.

The continued discovery of new gas reserves across Egypt means that in the short-term, it puts the country on the fast-track to self-sufficiency in gas production. In the long-term, it has the very real capacity to see Egypt emerge as a gas producing hub for East Africa and Europe,” Amr Azab, Head of Corporate Banking at Emirates NBD said in the statement.

He added that the loan will help in achieving Egypt’s 2030 vision for a diversified and balanced economy. “Here at Emirates NBD Egypt, we are proud to play a role in seeing all of these economic goals and opportunities come to fruition by working in partnership with other leading banks to meet the financial needs of organizations like EGAS,” Azab said.

In April 2016, Emirates NBD secured a 2 billion EGP deal with the state-run Egyptian Electricity Holding Company to help it increase national power supplies through the construction of new power plants.