A consortium led by National Bank for Development (NBD), Bank Audi and Banque Misr finalized the memorandum of terms and conditions regarding arranging an Islamic Sharia-compliant syndicated loan worth EGP 1.2 billion for Al-Nouran Sugar Company. Signing the memorandum of understanding and terms was postponed because the Islamic Development Bank, which acquires a share with value of US$ 25 million in Al-Nouran Sugar Company, was delayed in approving the memorandum and conditioned that the loan shall be in compliant with sharia law. The International Company for Leasing (Incolease) and Segolease study the contribution with 10%-15% to the loan through financing the purchasing of machines for the factory. Sources expected the loan arrangers to sign the memorandum of conditions and terms next week and afterwards the arrangers will invite other Islamic and commercial banks that have licenses to conduct Islamic transactions to contribute to the finance. The 8 to 10-year syndicated loan will finance the establishment of a sugar factory in Salhia City in Sharkia governorate. The volume of the project's investments is EGP 1.9 billion. The project will start production after three years producing 250 thousand tons annually. Industrial Development Authority approved Al-Nouran Sugar Company's establishment of a factory in Salhia City in Sharkia Governorate in the third quarter of 2010. It is worth mentioning that Al-Nouran Holding Company is an importer, exporter, marketer and distributor of goods; mainly raw materials and white sugar. Total sugar production in Egypt is 1.7 million tons, while the consumption volume is 2.7 million tons, meaning that Egypt imports one million ton of sugar, according to a study prepared by Industrial Development Authority
