National Bank of Egypt secures $1bn syndicated loan

National Bank of Egypt (NBE) has signed a $1bn senior unsecured syndicated term loan facility.

The transaction, which exceeded initial targets, reflects the bank’s credit profile and the market’s positive outlook on the Egyptian economy.

The facility saw Emirates NBD Capital, Mashreqbank and Firstrand Bank (acting through its Rand Merchant Bank Division) serving as global coordinators.

Emirates NBD Capital also acted as the syndication agent, while Mashreqbank took on the role of documentation agent, and First Abu Dhabi Bank was appointed as the facility agent.

The syndicate included a diverse group of financial institutions.

Loan facility oversubscribed: National Bank of Egypt

The loan facility, initially launched at $750m, was 1.7 times oversubscribed, leading NBE to exercise the green shoe option and close the transaction at $1bn.

This substantial oversubscription highlights the strong global demand from 19 institutions across Western Europe, Asia, Africa, and the Middle East, reflecting confidence in NBE’s financial stability and its strategic importance to the Egyptian economy.

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The proceeds from the facility will be utilised for general corporate funding purposes and trade finance requirements of NBE, providing essential support to its operations and growth.

NBE emphasised that the overwhelming response, despite market volatility due to current geopolitical conditions, is a testament to its solid banking relationships and credit strength.

In a statement, NBE expressed sincere appreciation to the coordinators and financing partners for their commitment and contribution to the transaction, which showcases the bank’s extensive international relations and the efficacy of its funding strategy.