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NBK proposed to extend LE600m for manufacturing nitrates & acides

NBK proposed to extend LE600m for manufacturing nitrates & acides

Cairo: The National Bank of Kuwait (NBKE) has proposed EGP600mln for funding the manufacturing of acids and nitrates by Abu Qir Fertilizers and Chemicals (ABUK) , the proposal came after AQFC's board of directors had announced late last week that it approved a EUR105 funding due to be extended by alliance made up of the National Bank of Egypt, Misr Du Banque and QNB Group.

The managing director of AQFC Saed Abu El-Maati told Al-Mal newspaper that the company has received several funding proposals from other banks, noting that the project aggregate costs amount to EUR133.6mln.

" Sealing the contracts with banks extending foreign currency-denominated loans will take place during the next month," said Abu El-Maati, noting that the National Bank of Egypt has been entrusted with arranging the loan, whereas Bank Misr and QNB will distribute shares among banks.

Extending key funding to the project saw raging rivalry between the alliance headed by NBE and another one made up of the five banks of the Egyptian Gulf, Alexandria, Ahli United, Emirates NBD, and the United Bank.

" AQFC will seek the project to be licensed, as it aims at producing 210k ammonium nitrate per year, part of which may be exported," said he.

Almost 28 months are the duration required for constructing the project, as its costs may be retrieved in the span of 4 years, he elaborated.
To meet market needs of almost 9 million tonnes per year, AQFC plans to produce over 22m tonnes fertilizers, creating a huge surplus for exporting.

AQFC exports products to 22 countries including the U.S, Italy, France, South Africa, Turkey, and South East Asia, he explained.

Source: AlMal

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