A banking alliance led by Banque Misr, alongside Suez Canal Bank and Al Baraka Bank–Egypt, has successfully secured long-term joint financing of $108m for MAFI for Agricultural Produce Industries. This funding will cover a portion of the estimated $180m investment required to establish, build, implement, and operate a factory complex dedicated to producing fruit and vegetable concentrates and freezers in Sadat City.
Banque Misr served multiple roles in the banking alliance, acting as the financing agent, sole financing marketer, capital account bank, revenue account bank, initial lead arranger, and lending bank. Suez Canal Bank functioned as the collateral agent, debt service account bank, and also contributed as a lending bank and initial lead arranger. Al Baraka Bank participated as a lending bank and initial lead arranger.
Before securing this financing, the shareholders invested $72m into the project.
The financing agreement was signed in the presence of several key figures, including Ahmed Issa, Deputy CEO of Banque Misr; Akif El Maghraby, CEO and Managing Director of Suez Canal Bank; Hazem Hegazy, CEO and Vice Chairperson of Al Baraka Bank Egypt; and Ahmed Abou Hashima, Chairperson of MAFI for Agricultural Produce Industries.
The project encompasses five factories: a citrus concentrates factory, cloudy concentrates factory, tomato and multi-fruit concentrates factory, IQF freezing factory, and a freezing factory. The plan is to export 100% of the products generated by the project.
MAFI appointed Beltone as the exclusive financial advisor and first financing coordinator, while the law firm Matouk Bassiouny & Hanawi served as MAFI’s legal advisor. The legal advisory for the financing banks was provided by Serry El Din & Partners.
Ahmed Issa, Deputy CEO of Banque Misr, reiterated that Banque Misr’s involvement in this financing is part of its commitment to supporting the Egyptian economy. He emphasized that this initiative aligns with the state’s development objectives as outlined in Egypt’s Vision 2030. The banking alliance’s $108m financing aims to establish a comprehensive factory for the manufacturing and freezing of fruits and vegetables, thereby reinforcing Egypt’s position in global markets and enhancing its role as a regional food manufacturing hub.
Issa highlighted that this financing represents an investment in a sustainable future. It will increase national income by promoting the manufacturing and export of agricultural products, which in turn boosts dollar revenues, enhances foreign exchange reserves, and improves the balance of payments.
Ahmed Abou Hashima, Chairperson of MAFI, explained that the establishment of this entity followed extensive studies conducted with international institutions to assess global market needs and the suitable agricultural inputs available in Egypt.
In the initial phase, the expected export volume is projected to reach $200m. The project will utilize 100% local agricultural raw materials, with all production handled as a special free zone, ensuring that all financial obligations to banks are met in dollars from export proceeds. Plans are in place to double production in the second phase, with the potential to add other products in the future. This initiative aims to advance the localization of the agricultural industry by employing cutting-edge technology, thereby creating added value for national products and facilitating their export to global markets, particularly in Europe, the United States, the Gulf States, and Japan.
Akif El Maghraby, CEO and Managing Director of Suez Canal Bank, stated that his bank’s involvement in this joint financing underscores its commitment to supporting value-added industrial enterprises that foster economic growth and the achievement of sustainable development goals. He pointed out that Suez Canal Bank played a pivotal role as a primary lead arranger in structuring and finalizing this financing, highlighting its confidence in this strategic project and its significance to the Egyptian economy.
El Maghraby added that the project represents a promising step for enhancing Egypt’s agricultural manufacturing sector and aims to channel its entire production to global markets. This supports the state’s objectives of increasing foreign exchange earnings, improving the balance of payments, and enhancing Egypt’s global competitiveness. Additionally, the project will create new job opportunities, aiding the state’s economic and social development goals and attracting foreign direct investment through the contributions of foreign partners.
He emphasized that Suez Canal Bank views investment in value-added industrial projects as a fundamental component of comprehensive development. Furthermore, he noted that the bank’s involvement in this robust banking alliance affirms its dedication to supporting the national economy and providing innovative financing solutions.
Hazem Hegazy, CEO and Vice Chairperson of Al Baraka Bank Egypt, expressed pride in the bank’s involvement as the lead arranger and stressed the project’s importance in supporting the agricultural manufacturing sector and positioning Egypt as a regional food industry hub.
He said: “We, at Al Baraka Bank Egypt, are proud to be the first main arranger in this banking alliance. This step reflects our commitment to supporting promising and innovative investments in Egypt. Financing the MAFI project is part of our bank’s vision to drive sustainable development and enhance the private sector’s contribution to the national economy.”
Hegazy added: “This project is not limited to supporting the Egyptian agricultural manufacturing sector, but also consolidating Egypt’s position as a regional center for food industries, and generating direct and indirect jobs, which enhances the economic empowerment of local communities.”
He noted that the bank considers this partnership a strategic step towards activating a greater role for cooperation between the Egyptian banking sector and the private sector, which contributes to achieving the goals of Egypt Vision 2030 to build a more diversified and sustainable economy. “This project embodies our confidence in the ability of the Egyptian agricultural sector to provide high added value, and support our aspirations to build a prosperous future for future generations,” he noted.
