Banque Misr and Bank Audi, lead arrangers of the EGP 900 million Sharia-compliant loan offered to Egyptians Factory For Iron, approved the reforms made on the memorandum of terms and conditions in regard to changing the form of the finance from Murabaha to Istisna and Ijara. Amwal Al Ghad was informed that this loan will finance the construction of a factory for iron (IIC) in Beni Suef. Accordingly, providing Istisna and Ijara will be better than Murabaha in financing the construction of the factory and the purchasing of equipments. Banque Misr and Bank Audi asked National bank for Development (NBD), which has license for providing Ijara finance, to contribute in the syndicated loan. NBD approved on condition of being the manager of the loan. Banque Misr and Bank Audi are expected to finalize the reforms on the memorandum of by next week. This came after the Qatari partner in the factory insisted to have a sharia-compliant finance. It is worth mentioning that the 7-year finance is with a 2-year grace period, which is the period of construction, so that the company will repay the installments on 5 years. The Industrial Development Authority approved licensing four new iron factories which are; El-Marakby Iron in 6th of October City, National Port Said Steel Company, IIC Company in Sohag and National Steel Company in Sohag in the beginning of the current year among nine companies demanding the license.
