(MENAFN - Daily News Egypt) Banque Misr has led a coalition which includes several banks and financial institutions in order to sign a contract to increase joint funding provided to Al Sharkiyah Sugar Manufacturing Company (Al-Nouran) with EGP 1.35bn, taking the total funding to EGP 3.1bn.
This aims to continue repaying the investment cost of the company's factory and fund its working capital.
The coalition includes Audi Bank; Abu Dhabi Islamic Bank; Egyptian Export Development Bank; Arab Bank; Banque du Caire; Abu Dhabi National Bank; Egyptian Arab Land Bank; EG Bank; Industrial Development Bank; Bank of Alexandria; the United Bank; the Arab Fund for Economic and Social Development, and the Islamic Corporation for the Development of the Private Sector.
The total funding provided by the coalition will be used to continue financing the establishment of a beet sugar factor in Salihiya city in Al Sharqeya governorate, with a production capacity of up to 12,000 tonnes daily squeezed beet, and a refining capacity of 1,700 tonnes of sugar, in addition to an annual squeezing capacity of 235,000 tonnes, and 318,000 tonnes in refining capacity.
The investment cost of the factory after the increase is EGP 5.8bn, funded by the banks in the coalition with a total of EGP 3.1bn. Self-funding was injected by shareholders, worth EGP 2.7bn.
This project bridges the gap between the supply and demand of white sugar, which is currently estimated to be 1m tonnes, thus reducing importing, and therefore increasing the availability of foreign currencies.
The fruitful cooperation between the participating banks and the company's administration had a positive impact on the continuing establishment of the factory. Operation started in early March 2019.
Noteworthy, the banks working in the Egyptian market always seek to be part of the state's plan in sustainable development through encouraging local investments in order to support local products, reduces imports and aids in achieving self-sufficiency, as well as improving the quality of local industries.