Egypt has signed a $2 billion conventional and Islamic loan with several international and regional banks in a deal coordinated by two UAE lenders, according to the country’s finance ministry.
The deal was led by Emirates NBD Capital and First Abu Dhabi Bank.
This loan aims to finance the state budget and support the Egyptian economy in order to maintain its strong path in the face of fluctuations prevailing in global markets.
Egypt had initialized the deal with Emirates NBD and FAD in July 20 to obtain a one-year, $2 billion loan in two tranches to close the gap in its 2020/21 budget wrought by the COVID-19 pandemic.
“When they came to the market…on the back of COVID, the pricing was dislocated, the comparables were a bit on the high end. But they managed to convince the banks to commit to a tight level. And now…, it is in line with the market’s pricing,” according to a banking source.