This agreement will enable Egypt to cut back on sugar imports significantly.
Cairo, Egypt (PRWEB) April 27, 2014
Al Nouran Multitrading (ANM), Egypt’s leading private sector sugar trading house, held a ceremony on April 27, 2014, to commemorate the signing of the Senior & Mezzanine Islamic Facility Agreement for a new mega facility located in Al Sharkia Governorate. A total of EGP 2.5 billion (USD 357 million) will be invested into building this facility, which is expected to produce and refine more than 500,000 metric tons of sugar annually.
In addition to the project’s appealing financial projections, Al Nouran Sugar will be reducing the country’s reliance on imported sugar by a substantial 25% from the current one million tons annually and increasing exports of byproducts, leading to considerable savings to the balance of payments.
Al Nouran Sugar is also expected to generate up to 3,000 new jobs and employ over 55,000 workers, both directly and indirectly, associated with the production and delivery of sugar beet, upon the start of commercial operations.
Mr. M. Ashraf Mahmoud, ANM’s Founder and Chairman, said: “The signing of this agreement represents a significant chapter in ANM’s history. We are successfully adopting our vision of full integration of the sugar value chain, which will not only consolidate our business presence but will also enable Egypt to cut back on sugar imports significantly.”
The Initial Mandated Lead Arrangers of the Senior Facility include Banque Misr, Bank Audi, and Abu Dhabi Islamic Bank, all of whom are participating with up to EGP 900 million (USD 129 million) and securing the remaining facility amount, taking the total to EGP 1.5 billion (USD 214 million), of which 16% is dominated in USD. It is worth noting that overall participation commitments have exceeded 100% of the total facility amount required for the project, which the IMLAs have secured through 13 banks.
The ceremony witnessed the signature of the Al Nouran Sugar Project Islamic Senior Syndicated Facility Agreement, the Mezzanine Facility Agreement, and the Initial Working Capital Facility Agreement, with a consolidated value of EGP 1.9 billion (USD 271 million).
The Mezzanine Facility is arranged by the Islamic Corporation for Development of the private sector (ICD), which is also participating in the Mezzanine tranche along with The Arab Fund for Economic and Social Development and the Société Arabe Internationale de Banque (SAIB).
The shareholders of Al Nouran Sugar include Al Nouran Multitrading, founder and sponsor of the Al Nouran Sugar Project with the largest equity share; the Islamic Corporation for Development of the Private Sector, a subsidiary of the Islamic Development Bank headquartered in Jeddah, Saudi Arabia; The Arab Fund for Economic and Social Development headquartered in Kuwait; and The Egyptian Sugar & Integrated Industries Company.
The facility is expected to conclude construction and begin its operations in 2016.
Mohamed H. El-Feky
MElfeky (at) Alnouran (dot) com
Tel: +2 010 0007 3982