Egypt's OCI secures $1.9 billion in credit facilities

Reuters, Tuesday 4 Oct 2011

Country's largest listed company will use funds to carry out a separation of fertiliser and construction businesses into two legal entities

Egypt's Orascom Construction Industries (OCI) , the country's biggest listed company, said on Tuesday its fertiliser subsidiaries had signed credit facilities worth US$1.9 billion with international and local banks.

The group plans to use the new facilities to refinance existing ones and help carry out a planned separation of its fertiliser and construction businesses into two legal entities under a single holding company.

"This package will help us achieve our twin objectives of refinancing the credit facilities which were due in 2013 thereby fulfilling our near-term refinancing obligations," Chief Financial Officer Salman Butt said.

He added that the loan would facilitate borrowing within the fertiliser business.

The initial lead arrangers and underwriters of the deal include Al-Ahli United Bank, Banque Audi, BNP Paribas , Citigroup , Commercial International Bank , HSBC , National Bank of Abu Dhabi , National Societe Generale Bank Egypt , and J.P. Morgan.

A 550 million euro five-year term credit facilities to OCI Nitrogen B.V., one of the firm's fertiliser subsidiaries, was coordinated by Rabobank International. 

The World Bank's private sector lender IFC had approved an investment package for OCI that included a $200 million loan for its Egyptian Fertiliser Company and it was helping to mobilise another $125 million from Citi, National Bank of Abu Dhabi, and Al-Ahli United Bank.  

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