Qalaa Holdings, one of the MENA region’s largest investment firms, has submitted a detailed report outlining how it plans to use its upcoming capital increase to expand stakes in key energy assets and settle outstanding bank liabilities. The report, prepared at the request of the Financial Regulatory Authority,the regulator of non-banking financial activities, has been sent to the Egyptian Exchange (EGX).
On September 10, the company’s board approved a capital increase of EGP3.87 billion, raising total capital to EGP25 billion.
Approximately EGP 1.93 billion, or 50% of the proceeds, will be allocated to increasing Qalaa’s stakes in the Egyptian Refining Company (ERC), Qalaa’s refinery business, and TAQA Arabia, according to the disclosure sent to the EGX.
Qalaa plans to raise its effective indirect stake in ERC from about 13% to 27.1% through its 55.4% holding in New Age Refining Ltd. The latter will acquire the full share capital of Qatar Petroleum International (QPI) Egypt Ltd., owned by QatarEnergy, which holds 38.11% of Arab Refining Company. The transaction is expected to close in December 2026, subject to agreed conditions.
New Age Refining Ltd. serves as Qalaa’s investment vehicle for this additional stake in ERC.
The increase in Qalaa’s effective ownership is intended to strengthen its exposure to ERC, and increase its share of the company’s expected returns and cash flows. ERC has an annual refining capacity of 4.2 million tons.
Also, Qalaa will allocate approximately EGP 960 million of the capital increase to exercise an option to repurchase 5% in TAQA Arabia, increasing its indirect stake from approximately 23.9% to 28.9%. The company expects the transaction to increase the group’s share of TAQA Arabia’s future earnings.
The remaining EGP 1.93 billion of the capital increase will be used to settle liabilities to Arab International Bank as well as other banks. According to the study, EGP 1.72 billion from the capital increase will be allocated to settle dues to Arab International Bank (AIB), including an $8 million installment due on December 31, 2026, $13 million in overdue installments, and $14 million in accrued interest and default charges.
The payment is meant to help follow the restructuring agreement, cut foreign‑exchange and financing risks, avoid extra default charges, and keep an expected waiver of about $4.6 billion, as long as final settlement conditions are met.
A sum of EGP 209.1 million will be used to repay the remaining December 2025 installment and the December 2026 installment owed under its settlement agreement with other Egyptian banks.
Qalaa Holdings is an Egyptian investment holding company focused on strategic industries, particularly energy, infrastructure, cement, agrifoods, transportation and logistics, mining, and packaging.
