Egypt completes $3bn loans of green and Islamic financing

Egypt government recently announced that it has secured green and Islamic financing loans worth $3 billion that was provided by a group of Gulf Banks, including, Emirates NBD and First Abu Dhabi Bank, according to media reports. These loans will be divided equally between green finance and Islamic finance over a period of three years. The financing was closed last month and saw a return of 260 basis points above the LIBOR rate.

Apart from Emirates NBD and First Abu Dhabi Bank, other banks that helped in financing the loans are Abu Dhabi Islamic Bank, Al Ahli Bank of Kuwait, Arab Banking Corporation, Standard Chartered, National Bank of Kuwait and Warba Bank.

In other news, Abu Dhabi-based renewable energy company Masdar and the UK’s EDF Energy plan to obtain a $700 million loan to refinance a $650 million credit facility that was obtained back in 2017. The financing will be made up of two tranches, a $250 million Islamic financing and a $450 million conventional loan. The loan will be provided by a consortium of international banks and financing agencies, including Natixis, Islamic Development Bank, APICORP and Siemens Financial Services.