Egypt has announced that it has reached an agreement with a consortium of global and regional banks for a $2 billion syndicated facility. The proceeds of the facility would primarily be utilised to finance country’s budgetary requirements.

 

Emirates NBD Capital Limited, the investment banking arm of Emirates NBD, and Standard Chartered served as global co-ordinators, initial mandated lead arrangers and bookrunners (IMLABs), acting both individually and collectively in these roles.

 

The Facility was closed with participation from a diversified mix of regional and international lenders, joining the facility as global co-ordinators and IMLABs. These include Emirates NBD Capital Limited (Emirates NBD Bank) and Emirates Islamic Bank; Standard Chartered Bank.

 

The mandated lead arrangers are Bank ABC; ABC Islamic Bank; Al Ahli Bank of Kuwait (DIFC Branch)

and Abu Dhabi Islamic Bank.

 

The Lead Arrangers include: Dubai Islamic Bank; Sharjah Islamic Bank; Mashreq Al Islami; National Bank of Kuwait (Bahrain Branch); Sumitomo Mitsui Banking Corporation (DIFC Branch).

 

Its arrangers are Gulf International Bank; Ajman Bank; Boubyan Bank;  Commercial Bank of Dubai anfd

The National Bank of Ras Al Khaimah.

 

Announcing the successful transaction, senior officials said the syndicated facility aligns with Egypt’s strategy to diversify sources of funding through access to international and regional syndicated loan market. 

 

The proceeds of the Facility would primarily be utilised to finance country’s budgetary requirements and support the country in safeguarding its strong economic path in the prevailing volatile global markets, while maintaining a decreasing debt trajectory as this facility follows the successful full settlement of $3 billion Syndicated Facility in November 2024.

 

Minister of Finance Ahmed Kouchouk said: "We are proud of the appetite and interest received from regional and international banks in the syndication. This $2 billion syndicated facility underscores Egypt’s resilience and the confidence of our economic reforms."

 

"Egypt continues to diversify its funding sources by leveraging regional financing opportunities, within a disciplined fiscal plan to maintain economic stability as well as fiscal and debt sustainability. Emirates NBD and Standard Chartered have demonstrated exceptional expertise in successfully closing this transaction," he stated.

 

The Facility was anchored by the IMLABs and was launched to a select group of Islamic and Conventional investors in general syndication. 

 

Concluding a super successful deal in a record time, the transaction received an overwhelming response from the market with more than 2.5 times oversubscription.

 

The Borrower chose to exercise the green-shoe option to upsize the Facility to USD 2 billion from the size at launch of $1.5 billion, post scale-back. 

 

The success of this transaction reiterates the strong regional and international investor confidence in the Egyptian economy, and its progressive credit story.

 

Hitesh Asarpota, the CEO of Emirates NBD Capital, said: "We are honored to have once again facilitated syndicated financing for Egypt and take pride in our expertise in offering financing solutions to support Egypt’s development priorities. The success of this issuance highlights Egypt’s strong position among emerging markets and the increasing confidence of cross-border investors in its economic outlook."

 

On the issuance, Standard Chartered Egypt CEO Mohammed Gad said: "Following the launch of our operations in Egypt, we are delighted to be part of this landmark transaction."

 

"As the largest and most diversified emerging market in the Mena region, Egypt holds significant strategic importance for Standard Chartered, and this successful issuance underpins our commitment to the country and aligns with our efforts to advancing the growth of the Egyptian economy while achieving the objectives outlined in Egypt’s Vision 2030. What a remarkable way to close 2024," he added.-TradeArabia News Service