Canal Sugar Signs a Bridge Facility Financing Agreement up to USD 100 mn & EGP 1.2 bn

Canal Sugar, an Egyptian Joint Stock company, headed by UAE investor Mr. Jamal Al Ghurair signed today a USD 100 mn and EGP 1.2 bn bridge financing agreement with a consortium of six banks to finance the procurement, erection and operation of its project in Minya for the coming six months and until a USD 700 mn LTD agreements are finalized.

The company had appointed Al Ahly Capital Holding as the Financial Advisor for the transaction and the sole book runner and global coordinator for the ECA limit.

The Project investment cost amounts to USD 1 bn and aims at developing the world’s largest beet sugar production facility with a capacity of 900k MT/year, as well as the reclamation of 181k feddans (77k ha) desert land West of Minya to grow 2 mn MT of sugar beet per year.

The banks’ consortium, led by the National Bank of Egypt as facility lead arranger & sole book runner, includes Qatar National Bank as a security agent, Bank of Alexandria, the Industrial Development Bank of Egypt, Suez Canal Bank, and The United Bank.

Zaki Hashem & Partners acted as legal advisor to Canal Sugar on the transaction and Helmy Hamza & Partners as the lenders’ legal advisor.