ANNOUNCEMENT 23 Dec 2013
On 23 December 2013, Banque Misr signed an Islamic financing contract with the Upper Egypt Electricity Production Company.
NUMBER OF INTERVENTIONS
Banque Misr (2013) Banque Misr Backs Energy Sector, Secures LE 285 million Islamic Finance to Upper Egypt Electricity Production Company. http://www.banquemisr.com/en/aboutus/press/Pages/Banque-Misr-Backs-Energy-Sector-Secures-LE-285-million-Islamic-Finance-to-Upper-Egypt-Electricity-P.aspx
On 23 December 2013, Banque Misr (BM) signed an Islamic financing contract with the Upper Egypt Electricity Production Company. The total value of this signed Islamic financing contract was LE 285 million (circa USD 41 million).
The financial resources obtained via this financing will be used by the Upper Egypt Electricity Production Company for upgrading its El Walidiea Power station located in Assuit (Egypt). This upgrading will comprise the installation of 2 production units in order to increase the station’s capacity (i.e. a capacity which is 612 Megawatt) and, by that extent also to increase its supply capacity in the market overall.
Furthermore, in the context of the GTA it is relevant denoting that in its official announcement Banque Misr (BM) stated that "... this is the first Islamic Descending Contribution contract to be granted to electricity sector and it comes as a concrete testament to Banque Misr’s commitment to support this vital sector, proving BM pioneering role in backing the national economy and putting its strategic objectives into actions to support various economic sector".
Upper Egypt Electricity Production Company (UEEPC) is a power generation company based in Egypt that is government owned.
Banque Misr is one of the leading state-owned banks in Egypt.
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.