CAIRO: Misr International Bank (MIBank) has arranged a syndicated loan worth $254.5 million for Misr Oil Processing Company (MOPCO) to build a new fertilizer plant, MIBank officials said on Tuesday. The export-only plant is to be based in Damietta on Egypt s Mediterranean coast, and will have the capacity to produce 635,000 tons of urea and 396,000 tons ammonia per year. The plant was to come online in the third quarter of 2009. During 2005, National Societe Generale Bank (NSGB) bought a 90.7 percent stake in MIBank. NSGB is itself 78 percent owned by France s Societe Generale. It is the first big transaction that we have made at MIBank since MIBank was acquired by NSGB … We are known as the specialists in fertilizers, MIBank Deputy Managing Director Pierre Bonzom told Reuters. MIBank said the syndication of the MOPCO loan was oversubscribed. Eleven banks took part, including the Arab Banking Corporation with a 15.7 percent stake, Arab African International Bank with 13.8 percent, and Commercial International Bank with 13.8 percent. MIBank s stake is 15.7 percent. Piraeus Bank, one of the smaller loan stakeholders with a 3.9 percent share, said it was keen to take part in the loan because it wanted to get a better foothold in Egypt s oil and gas sector. The raw material of fertilizer is natural gas. As a bank, we are interested in penetrating this sector, Piraeus Corporate Banking Manager Ahmed El Shourbagy told Reuters. MIBank shares remained relatively unchanged by the news, closing LE 0.03 ($0.01), or 0.1 percent higher at LE 30 by the end of Tuesday s session. Reuters
MIBank arranges $254.5 million loan for MOPCO
