A banking alliance made up of Bank of Egypt As the first principal and distributor of financing, the Technical Bank, the Revenue Account Bank, the National Bank of Egypt and Banque du Caire have entered into a syndicated loan of 152 million euros for the Wood Technology Company “WOTECH”, a subsidiary of the Petrochemical holding company.
The funding aims to build a plant for the production of MDF wood using rice straw as raw material. The signing was attended by the top management of the banks and the work teams participating in the financing, as well as the top management of the Petrochemical Holding and the Wood Technology Company “WOTECH”, according to a statement released by Banque Misr today, Wednesday.
The alliance was represented by Banque Misr as the first main arranger, financial marketer and technical bank, National Bank of Egypt as first main arranger, financial marketer, guarantee agent and general financing coordinator, and Banque du Caire as first main arranger, marketer and financing agent.
Mohamed El-Etreby, president of Banque Misr, referred to the bank’s constant propensity to support projects that support a clean environment, which is in in line with the state’s enthusiasm to develop final solutions to the “black cloud phenomenon” which is repeated every year, such as the funding aims to build a factory for the production of MDF wood with a production capacity. An annual investment of 205,000 meters cubes in Idku – Beheira Governorate, with a total investment cost of 217 million euros.
He stressed that Banque Misr provides full support to various national projects of different orientation, which directly and indirectly affect the citizen, indicating the job opportunities that the timber factory project will provide, which amounts to about 2,000 job opportunities.
The company aims to export around 50% of its target production, which will help provide part of the foreign exchange flows to the country, in how much each bank participates with its share in the 51 million euro range. The repayment begins after the expiry of tale period.
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