Orascom Construction Industries (OCI) announced that its wholly owned Fertilizer Subsidiaries have signed Credit Facilities totaling approximately US $ 1.9 billion with international, regional and local relationship banks. These facilities will be used to refinance the Group’s existing credit facilities, which had significant portions maturing in 2013. The new Credit Facilities have been organized at the Fertilizer Group Companies level to facilitate the creation of standalone Fertilizer and Construction businesses under a Holding Company structure. The facilities will be syndicated in due course.
The details of the facilities are:
- US$ 775 million 5-year Term Facilities made available to Egyptian Fertilizer Company (EFC). The Initial Mandated Lead Arrangers and Underwriters are Al-Ahli United Bank, Arab Bank, Banque Audi, BNP Paribas, Citi, Commercial International Bank, HSBC, National Bank of Abu Dhabi, National Société Générale Bank Egypt, and J.P. Morgan. Citi acted as the Global Transaction Coordinator.
- EUR 550 million 5-year Term Credit Facilities available to OCI Nitrogen B.V.. The Initial Mandated Lead Arrangers, Bookrunners and Underwriters are Banque Audi, Barclays Capital, BNP Paribas, Rabobank International, Crédit Agricole Corporate and Investment Bank, Europe Arab Bank, National Bank of Abu Dhabi, and Société Générale. Rabobank International acted as the Global Transaction Coordinator.
- Up to US$ 300 million 3-year Term Credit Facility available to OCI Fertilizer Holdings. The Initial Mandated Lead Arrangers and Underwriters are Arab Bank, Banque Audi, Citi, and Société Générale Bank. Citi acted as the Global Transaction Coordinator.
In addition to the above facilities, IFC has approved an investment package for Orascom Construction Industries that included a $200 million loan to the Egyptian Fertilizer Company and helping mobilize up to an additional $125 million from Citi, National Bank of Abu Dhabi, and Al-Ahli United Bank.
OCI Chief Financial Officer, Salman Butt, commented: “This transaction is testament to our long-standing relationships with our core banking group, who have come together to arrange and underwrite in this sizeable credit package of US$ 2.2 billion in the current market conditions. This package will help us achieve our twin objectives of i) refinancing the credit facilities which were due in 2013 thereby fulfilling our near-term refinancing obligations and ii) facilitating our goal of borrowing within a Fertilizer Group structure to help stream-line our credit facilities alongside our business segments. We extend our appreciation to all the Mandated Lead Arrangers, Bookrunners, Underwriters and the Lead Coordinating Banks, namely Citi, Rabobank International and the International Finance Corporation, who all worked with us in structuring and coordinating these facilities.”