JBIC extends loans to Egyptian energy companies| MENAFN.COM

Tuesday, 04 October 2022 08:46 GMT

JBIC extends loans to Egyptian energy companies

(MENAFN- Daily News Egypt) The Japan Bank for International Cooperation (JBIC) has extended its loans to the Egyptian Offshore Drilling Company and Egyptian Refinery Company (ERC), according to Naoki Tamaki, Middle East Chief Representative at JBIC.

Tamaki told Daily News Egypt the bank is interested in the hydrocarbon sector, adding that the hydrocarbon and infrastructure sectors are the most promising sectors in Egypt. He added that the Egyptian market needs to be watched closely, especially in this period, as it has huge potential.

"We are satisfied with the current direction, and we would like to support the development of Egypt," Tamaki said.

In his vision to the Egyptian market's incentives to attract more investment, Tamaki said that stability, transparency, and efficient process of administrative matters are the most important incentives needed by investors.

Tamaki expects that the New Suez Canal would increase government revenue and make government credit healthier. He added that, if Japanese companies are interested in the Suez Canal Axis, the bank would support them.

"As we are a Japanese governmental financial institution, if Japanese companies are involved as a direct exporter or investor in solar power plants in Egypt, we are happy to consider," said Tamaki.

The JBIC is interested in supporting Japanese companies in Egypt, he said, while he expects that MoUs would be signed in the energy and infrastructure fields during Egyptian President Abdel Fattah Al-Sisi's expected visit to Tokyo.

On 8 June, JBIC's Executive Managing Director Koichi Yajima met Egyptian Prime Minister Ibrahim Mehleb to discuss Egypt's investment and tourism promotions , amongst other issues.

Yajima expressed the bank willing to provide facilitated loans to finance power generation projects through new energy sources such as wind, or clean coal. He added that the JBIC is interested to strengthen their presence in the Japanese automotive industry in Egypt.

In 2010, the JBIC funded the metro station project with a total of ¥7.9bn in investments, in addition to financing the ERC with a loan of $900m.

On 25 September 2008, the bank signed a loan agreement totalling up to $500m with the Egyptian Offshore Drilling Company. The loan was provided in a co-financing agreement with a bank syndicate led by HSBC's Tokyo Branch and others as lead arrangers.

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