Egypt, Canada to establish a $1.5 billion petrochemical project

The Egyptian Minister of Petroleum Eng. Sameh Fahmy witnessed the signing of a financing agreement in which Egyptian banks participate with nearly $380 million loan in the establishment of the $950 million Egyptian Agrium Company for Nitrogenous Products.
This project is to produce Ammonia / Urea, with a capacity of approximately 1.3 million tons of Ammonia / Urea and investments of about $ 1.5 billion.
Egyptian banks’ participation represents  40 % of the main value of the loan, this consortium includes; the National Bank of Egypt , Banque Misr, Commercial International Bank CIB , Al Ahly Societe Generale Bank ,and the Arab Bank , whereas the rest of the loan , which is about $570 million, will be financed by the International banks.
The loan’s period is 15 years, of which 3 years are grace period and the total obligations will be paid back from the cash flows generated from the project.
The contribution of the Petroleum Sector to the project is 33%, the Canadian Agrium Co. with 60%, and the Arab Company for Petroleum Investments (APICORP) with 7%. The project aims at meeting the local demand of the Urea used as a fertilizer and exporting the surplus abroad.

(Oil Egypt)

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