(Photo courtesy of Banque du Caire)
Banuque du Caire is considering supporting projects that have social responsibility, Chairman and CEO of the bank Mounir El-Zahed told the Daily News Egypt on Saturday.
On 24 March, Banuqe du Caire announced the signing of contracts offering Misr Petroleum Company and Petroleum Cooperative Society each equal portions of an EGP 2bn and a $150m loan to buy petroleum products in order to remarket and distribute them to fuel stations, the bank said in a statement.
The bank noted that the agreement aims to support the petroleum sector in meeting its “urgent” needs.
Banque du Caire was urged to arrange the deal due to its “direct positive return in economic growth”, El-Zahed said.
“The loan to the petroleum sector is expected to be followed by similar moves from other banks”, economic and banking expert Bassant Fahmy said.
Fahmy, however, stressed that aiding oil and gas sectors is “crucial”, as they are among the most important sectors in reviving Egypt’s economy.
“The bank will work non-stop to support different sectors, such as construction, electricity and microfinance sectors,” El-Zahed said.
The period of the loan, which is prepared by Banuqe su Caire, is four years for the Egyptian pounds fraction, and 26 months for the US dollars fraction.
The deal is a collective contribution from Société Arabe Internationale De Banque (SAIB), Export Development Bank of Egypt (EDBE), Suez Canal Bank, Ahli United Bank, Emirates National Bank of Dubai, Industrial Development Bank, Arab Investment Bank (AIB), Egyptian Arab Land Bank, Union National Bank, the United Bank of Egypt and Al Baraka Bank of Egypt.
“Banque du Caire is [among] the most active banks in completing syndicated loans,” El-Zahed noted.
In a similar move, thirteen banks have announced in December the completion of an EGP 2bn syndicated loan for the Egyptian General Petroleum Corporation (EGPC) to meet its “internal and external needs” and secure the continuous supply of petroleum products for the local market.
The deal, which was organised by SAIB, was considered a contribution from the banking sector to revive the petroleum sector.
Earlier in 2011, Banque du Caire arranged an EGP 925m syndicated loan for the Misr Petroleum Company and Petroleum Cooperative Society that was deemed “the fastest finance process after the revolution”, according to the bank.
