Deutsche Bank, HSBC said arranging $3.7 bn Egypt power loan

Egypt, the most populous Arab country, is seeking to raise about $3.7 billion in loans to fund power plants after signing a deal with Siemens AG to build the projects, according to three people with knowledge of the plan.

Deutsche Bank AG, HSBC Holdings Plc. and Kfw-Ipex Bank AG are helping state-controlled Egyptian Electricity Holding Co. raise the financing, the people said, asking not to be identified because the information is private. The loan is being supported by export credit agency Euler Hermes Group, they said.

A draft loan agreement has been referred to the economic ministers’ group for review, Mohamed Shaker, minister of electricity, said in a phone interview from Cairo, without confirming the loan’s size and the banks. The loan carries a guarantee from the country’s Ministry of Finance with the first tranche expected to be drawn in about six months, he said.