A consortium of National Bank for Development (NBD) and Bank Audi has finalized signing the second Islamic sharia-compliant finance contract in the Egyptian market with Egyptian Company for Phosphate and Chemicals to finance the establishment of a factory for phosphate fertilizers in Alexandria. Amwal Al Ghad was informed that this consortium has signed last Tuesday an initial terms sheet to offer EGP 688 million to the Company after a fierce competition with five banks including National Bank of Egypt, Banque Misr, Alex Bank, Credit Agricole and NSGB. Sources close to the matter told Amwal Al Ghad that both lenders will invite banks with Islamic banking licenses to subscribe in the 7-year finance. Both banks did not decide yet their contributions in the syndicated loan. Sources expected that NBD-Audi Consortium will provide more Islamic sharia-compliant finances to education projects and food industries to top the banks that arrange corporate Islamic loans (Murabaha, Istisna and Ijara). Amwal Al Ghad earlier reported exclusively that Banque Misr and Bank Audi has acted as bookrunners and arrangers of a syndicated loan of EGP 900 million to finance the establishment of Egyptian Factory for Steel in Beni Suef owned by Ahmed Abu Hashima. This was the first Islamic corporate finance in the Egyptian market to be offered in compliance with Islamic sharia rulings.
