German credit insurance agency Euler Hermes will underwrite a 4.1 billion euro loan to Egypt from a consortium of German banks for electricity production undertakings to be constructed by Siemens, the Egyptian government said. The agency will acquire 14 percent of the loan (574 million euros) in insurance on disbursal, economic daily Al-Borsa said, quoting Electricity and Renewable Energy Minister Mohamed Shaker. Based on the deal, the loan will be repaid over a period of 12 years with a three-year grace period. The report, however, did not mention how much debt interest is involved. The consortium is composed of HSBC Germany, Deutsche Bank and the German Bank of Reconstruction (KFW). It will finance three projects in Beni Suef, Borolos and the new administrative capital with a total capacity of 14.4 gigawatts. Last June, German industrial group Siemens signed an 8 billion-euro-deal (US$9 billion) with Egypt to supply gas and wind power plants designed to boost the North African country's power generation by 50 percent. The deal will be financed by Siemens Financial Services and supported by export credit agencies in Germany and Denmark, Siemens said. Source: Egypt Independent
