NRTC secures loan to finance fleet construction

Banque Misr is lead arranger and facility agent and is providing EGP122m of the package. It is joined by Arab African International Bank as lead arranger and security agent (EGP108m) and the Bank of Alexandria as lead arranger (EGP95m).

"This financing package is an important step for NRTC, which is building the nation's first end-to-end transportation and logistics network centered around the Nile. Egypt is heavily dependent on road transport, with more than 95% of all goods in the country being transported by truck, which places a heavy burden on the infrastructure of roads and highways. Comparatively, the volume of river transport currently accounts for less than 1% of total goods transported, despite it being more fuel efficient and more environmentally friendly."

said Hisham El-Khazindar, Citadel Capital's Managing Director and Co-Founder.

The seven-year loan will be used to finance 24 of the more than 90 barges NRTC will eventually operate. Each vessel can handle containers, dry bulk or general cargo. The full fleet will be capable of transporting over 10m tons of goods per year along the Nile by 2013. NRTC has signed two three-year contracts worth a combined EGP560m with Alexandria Shipyard and Arab Contractors for the construction of 62 barges with a capacity of 1,500 to 1,600 tons each. The first of the new barges presently under construction are scheduled to come into service at the beginning of 2010. The company is already serving a number of customers with a fleet of 30 refurbished barges.

"Citadel Capital and its Platform Companies have proven track records of working with leading national and regional banks across the product spectrum," said Citadel Capital Managing Director Ahmed El-Houssieny. "Banque Misr, AAIB and the Bank of Alexandria delve deep into the business plans of their clients before making a commitment, and each of them came away from this process as fundamental believers in the opportunity at hand. It's a great endorsement for this investment in NRTC."

NRTC's world-class management team is supported by local and international consultants including some of Europe's leading experts in river transport, such as the Netherlands' Royal Haskoning and Ship Design Group (SDG), a designer with extensive experience in barge design and construction.