Egypt’s Al Ezz Dekheila Steel (EZDK) has secured a loan of USD 125 mln from Emirates NBD in order to finance the acquisition of the government’s stake in the company, according to the local media reports.
The loan will be converted into Egyptian pounds (EGP) and repaid to investors through state-owned banks. The remaining funds needed to complete the purchase of the government’s stake will be self-financed by the firm.
This development followed an announcement by the Minister of Planning and Economic Development, Hala Elsaid, stating that the government sold its 31pct stake in Al Ezz Dekheila Steel for USD 241 mln. The deal required 40pct of the payment to be made in in EGP and the rest in USD.
Al-Ezz Steel Group currently possesses approximately 64pct of the EZDK. The government, represented by various entities, owns around 32.9pct, while small investors hold a 3pct stake.
EZDK is the largest steel manufacturing facility in Egypt, with a total capacity of 3.2 mln tons of finished steel products per annum, comprising 2.1 mln tons per annum of long products (rebar and wire rod) and 1.1 mln tons per annum of HRC. It is located in Dekheila, west of Alexandria, Egypt’s second biggest city and its main port.
