NBE Finalizes $1 Billion Syndicated Loan, Highlighting Market Confidence

NBE Finalizes $1 Billion Syndicated Loan, Highlighting Market Confidence

By Staff Writer, 19 June 2024

The National Bank of Egypt (NBE) has successfully signed a $1 billion senior unsecured syndicated term loan facility, significantly exceeding initial targets and reflecting the bank's strong credit profile and the positive market outlook on the Egyptian economy.

The transaction, initially aimed at $750 million, was oversubscribed by 1.7 times, prompting NBE to utilize the green shoe option and increase the total to $1 billion. This substantial oversubscription underscores the robust global demand and confidence in NBE's financial stability and strategic role in Egypt's economic landscape.

Key financial institutions played pivotal roles in the transaction. Emirates NBD Capital, Mashreqbank, and Firstrand Bank (via its Rand Merchant Bank Division) served as global coordinators. Additionally, Emirates NBD Capital acted as the syndication agent, Mashreqbank as the documentation agent, and First Abu Dhabi Bank was appointed as the facility agent. The syndicate included 19 diverse financial institutions from Western Europe, Asia, Africa, and the Middle East.

The proceeds from this loan facility will be allocated for NBE's general corporate funding and trade finance requirements, bolstering the bank's operational support and growth initiatives.

Source: Zawya

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