ANNOUNCED AS TEMPORARYNo
Bailout (capital injection or equity participation)
On 18 January 2015, ezzsteel officially announced that it has signed a long-term loan agreement with the National Bank of Egypt (as the lead arranger & facility agent) as well as the Arab African International Bank (as the lead arranger & security agent). The amount of this long-term loan is EGP 1.7 billion (ca. 234 million USD) and the repayment period is 7 years (on a quarterly basis).
ezzsteel will use this loan for the purpose of restructuring its existing loan facilities (facilities representing a major part of the company's debt), in the face of the sharp financial losses that the company suffered in the fiscal year 2014 - i.e. financial losses that were in part caused by the natural gas shortage in Egypt in 2014.
ezzsteel is the largest steel company in Egypt as well as the entire MENA region. ezzsteel's headquarters are based in Mohandessin, Giza, Greater Cairo.
The National Bank of Egypt is a state-owned institution as well as the largest and oldest Bank of Egypt.
Arab African International Bank is Egypt's first Arab multinational Bank. The Central Bank of Egypt and the Kuwait Investment Authority are the core shareholder base of this Bank.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.
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