Arab Bank Group enters $900m loan agreement in favor of Orascom Construction Industries

Arab Bank played the most senior role in the deal as Mandated Lead Arranger (MLA).

The loan will be utilized to partly finance the recent acquisition of the Egyptian Fertilizer Company (EFC) by OCI.

Arab Bank Chairman/CEO Abdel Hamid Shoman said the Bank's participation in the agreement underlines the vital and leading role it plays in managing and extending large loans, reflecting on Arab Bank's strategy seeking to meet the financing demands in Arab and international markets, especially in the services and production sectors.

Shoman added that Arab Bank has expanded its finance and investment channels, within the Arab and regional markets stressing the confidence the bank has in these markets and the huge investment opportunities available, triggering an accelerating pace of development.

Through its active and growing presence in Arab and international financial markets, Arab Bank is offering novel investment and saving tools that help better utilize assets and generate higher revenues in a way that ensures ultimate balance between sources and uses of funds and the best returns on investments.

Egypt's OCI, established in 1976 as a general contracting and trading company, is a leading contractor active in emerging markets, providing engineering, procurement and construction services in industrial, commercial and infrastructure projects for public and private sectors primarily in Europe, Middle East, North Africa and Central Asia.

OCI was founded by the Sawiris family who collectively own 60% of this public shareholding company's stake, while the remaining 40% of shares are held by other shareholders.

Established in 1998, EFC owns several major facilities in the Egyptian fertilizers market, foremost of which is a plant using Nitrogen in processing fertilizers designed as per the best in such facilities in the world.

Daily production of ammonia stands at 1200 tons, while it produces 1750 tons of urea on a daily basis.

The company is in the process of expanding its operations and doubling production through a new production line built in line with international standards.