The Clap
Egyptian Chemical Industries (Kima) is getting two loans worth USD 200 million and an EGP 2 billion loan thanks to a partnership with six banks, as per a company statement.
What
The loans will be used to fund their ammonium nitrate project, which should cost around USD 300 million as per an EGX statement.
Meanwhile, the banks involved are the National Bank of Egypt, Banque Misr, Banque Du Caire, Arab African International Bank, Bank ABC, and the Egyptian Arab Land Bank.
Ammonium Nitrate?
It’s one of agriculture’s most popular fertilizers. The facility will manufacture 800 tons of ammonium nitrate daily, according to a press release by a key project stakeholder. It’ll cater to both local and global fertilizer markets, enhancing crop yields for local farmers and facilitating exports worldwide.
Money Moves
The project’s USD 300 million contract was awarded to a consortium led by Tecnimont, a Milan-stock-exchange-listed company. And it’ll be paid as USD 234 million, EGP 1.6 billion, and then an additional USD 11 million paid in EGP at official rates on the day of payment.
Another EGX Player
The Tecnimont-led consortium also includes Orascom Construction. Of the USD 300 million contract, USD 220 million is for Tecnimont and around USD 80 million should were awarded to Orascom.
Some Fertilizer Context
The Egyptian fertilizer industry is an exporting powerhouse with heavyweight champions that include EGX-listed Kima, Abu Qir, and MOPCO. Their stocks recorded noticeable year-on-year surges: MOPCO +345%, Abu Qir +118%, and Kima +98% — as calculated on Feb. 15.
