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Clifford Chance in Egypt sugar plant funding deal

Cairo, May 29, 2014

International law firm Clifford Chance and Matouk Bassiouny, a full-service independent law firm based in Cairo, have  together structured a EGP1.8 billion ($251,170) facility package for Cairo-based Al Sharkeya Sugar Manufacturing (ASSM) to help boost its capacity.

The Matouk Bassiouny team was led by partner Mahmoud Bassiouny (Finance & Projects) and the Clifford Chance team was led by partner Mohamed Hamra-Krouha.

The duo together advised Abu Dhabi Islamic Bank, Banque Audi, Banque Misr, as senior mandated lead arrangers, and the Islamic Corporation for the Development of the Private Sector (ICD), as Mezzanine mandated lead arranger on the Islamic Shari’a compliant financial package extended to  ASSM for the construction of a sugar production facility in Al Sharkeya Governorate, Egypt.

They drafted all the relevant senior and mezzanine facility documents and lead the negotiations on behalf of the senior and mezzanine facilities’ providers.

The finance package (which also included a working capital facility extended by shareholders of ASSM) was signed on April 27, 2014 with an ijara/istisn’a senior facility of EGP1.5 billion and a mezzanine one for $32 million.

Commenting on the deal, Mohamed Hamra-Krouha said: "Clifford Chance is delighted to be involved in this landmark Egyptian financing, a positive sign that Egypt is once again looking to global financial debt markets to service the needs of its 90+ million population."

Mahmoud Bassiouny expressed delight at being an adviser to the financiers to Al Sharkeya Sugar Manufacturing "on a landscape-changing deal of this kind."

Once construction is complete, the sugar manufacturing facility is expected to cover around 50 per cent of Egypt’s sugar needs.

The participation of local and regional banks and financial institutions is a milestone in the development of the Egypt's Islamic finance market, said the official.-TradeArabia News Service




Tags: Egypt | Clifford Chance |

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