ANNOUNCED AS TEMPORARYNo
On 23 September 2016, it was announced that on the 16th of the same month, the African Export-Import Bank (Afreximbank) granted a USD 75-million medium-term loan to the Egyptian Ethylene and Derivatives Company (ETHYDCO). The official statement of the Bank stated that this loan will in general, enable the company to "to support the expansion of Egypt’s petrochemical industry, boost its exports and natural gas processing capacity and equip the sector with better environmentally-friendly infrastructure".
The financing obtained through this denoted loan were stated to be designated to partially finance the USD 1.925 billion ETHYDCO Complex - i.e. a complex which represents a greenfield partnership project between Egyptian Petrochemicals Holding Company, Egyptian Natural Gas Company, Sidi Kerir Petrochemicals and several Egyptian banks.
The ETHYDCO Complex aims to accommodate several factories that will be focused on the production of ethylene and ethylene derivatives (which are chemical substances that are widely utilised in the construction and plastic packaging industries). Specifically, the loan facility provided by the Afrexim Bank will specifically focus towards financing the ethylene and butadiene plant, the polyethene plant and the permanent gas-fired power plant situated within the ETHYDCO Complex. The output of this complex will primarily be designated for export in the European, North American as well as African markets.
It is important denoting that the official statement of the Afrexim Bank stated that "the complex is a key initiative under the Egyptian government’s Petrochemicals Master Plan aimed at driving economic diversification and increasing local content and value addition in the country’s natural gas sector through the production of exportable petrochemical products".
Egyptian Ethylene and Derivatives Company (ETHYDCO) is a leading Egyptian manufacturer of the following plastics and rubber products: linear low & high-density polyethene, butadiene, low cis and solution styrene butadiene synthetic rubber.
ETHYDCO is a state-owned Egyptian entity as the shareholders composing the ownership structure of this entity are:
African Export–Import Bank, with headquarters in Cairo (Egypt) is a financial institution established with the purpose of promoting finance trade within the African continent and trade between Africa and other continents. The shareholder structure of the African Export-Import Bank in the following:
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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