Egypt signs $ 2 billion loan with regional and international banks – statement

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Adds details, background

CAIRO, August 31 (Reuters)Egypt signed a $ 2 billion conventional and Islamic loan with several international and regional banks in an agreement coordinated by two lenders from the United Arab Emirates, announced Monday the Ministry of Finance.

Emirates NBD Capital ENBD.DU and the first bank in Abu Dhabi FAB.AD wco-coordinators and leaders of the transaction, the ministry said in a statement.

TThe loan aims to “finance the state budget and support the Egyptian economy in order to maintain its solid trajectory in the face of the fluctuations which prevail on the world markets”, he added.

The loan has been approved by parliament, the statement said.

A parliamentary document obtained by Reuters showed that Egypt initiated the deal with Emirates NBD and FAD on July 20 to secure a one-year $ 2 billion loan in two installments to close the gap in its 2020 budget. / 21 caused by the COVID-19 pandemic.

The first tranche is a conventional $ 1.490 billion facility and the second a $ 510 million Islamic facility, the document adds.

“When they hit the market … on the back of COVID, the prices were dislocated, the comparables were a bit high-end. But they were able to convince the banks to commit to a tight level. And now … that’s in line with market prices, “a banking source said.

(Reporting by Ehab Farouk; additional reporting Yousef Saba; writing by Mahmoud Mourad; editing by Jason Neely / Mark Heinrich)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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