Written by Afaf Ammar:
Posted on: Saturday, May 13, 2023 – 5:07 PM | Last update: Saturday 13 May 2023 – 5:07 PM
Sources: The dollar loan is directed to accelerate the payment of installments due by the company before the end of this May
Ahli United Bank intends to grant a $130 million loan to the Egyptian Company for the Production of Propylene and Polypropylene, to be directed to pay off debts owed by the company, according to informed sources.
The sources added to “Money and Business – Al-Shorouk” that the company obtained approval from the Ahli United Bank to obtain a loan of 130 million dollars, which will be directed to conduct an expedited payment of debts owed by it in favor of creditor banks.
Last month, the company addressed the creditor banks to make an expedited payment of the installments due before their due date, after it retracted its previous request to schedule and carry forward the payment dates for these installments.
According to the sources, the company is scheduled to finish paying off and closing the debts owed by it by the end of this May, after obtaining dollar financing from AUB.
According to the schedule for paying the installments owed by the company to banks, the last date for payment is the end of 2025, which are semi-annual installments.
The sources indicated that the blurring of the vision regarding the future of the exchange rate and interest rates prompted the company to expedite the payment of the debts owed by it, which deserve a loan it had previously obtained to finance its expansions.
Egypt reduced the price of its currency 3 times from March 2022 until last January, which pushed the price of the Egyptian pound down against the dollar by about 25% during the first quarter of 2023.
The ownership structure of the Egyptian Company for Propylene and Polypropylene is distributed by 23% to a group of companies affiliated with Mohamed Farid Khamis, including “Orientals Holding”, 22% to companies affiliated with the Egyptian Petroleum Authority, 22% to the “Desa” Investment Holding Company led by Hayel bin Saeed, and 15% to the “Gulf Money” company. And 10% for the Arab Investment Company and 5% for the “Oriental Petrochemical Company”.
The Egyptian government announced its intention to sell Egyptian Propylene, as part of the government offering program that it announced last February and includes 32 companies to be offered on the stock exchange or to sell shares of them to strategic investors.
The company is the largest producer of polypropylene in Egypt and North Africa, as it owns a factory located in Port Said Governorate for the production of propylene from propane gas and its derivatives. Announced in September 2021.