The African Export-Import Bank (Afreximbank) has disbursed a sum of US$200million to the Egyptian General Petroleum Corporation (EGPC) to support EGPC’s investment in the Middle East Oil Refinery Company (MIDOR).
The Investment Financing Facility, disbursed during a signing and disbursement ceremony in Cairo recently, is also aimed at supporting EGPC’s company expansion plan – which is part of Egypt’s plan to become a regional hub for exporting oil products to the Middle East region and the rest of Africa.
Denys Denya, Executive Vice-President (Finance, Administration and Banking Services), signed the facility agreement on behalf of Afreximbank while Ayman Hegazy, Deputy Chairman of EGPC, signed for his corporation.
EGPC established MIDOR in 1994 and holds 98 percent of the shares, while the rest are held by the Suez Canal Bank. The refinery, located in the Ameryia Specialised Free Zone in Alexandria, is reputed to be the most advanced oil refinery in Egypt. It has 16 production units with a combined maximum refining capacity of 100,000 barrels per day, and is reported to have refined about 37 million barrels as at the end of 2017.
The refinery is working to expand its production capacity to 160,000 barrels per day by 2020.
Afreximbank’s support to EGPC is part of its effort to promote intra-African trade and industrialisation, and export development in Africa. Intra-African trade and industrialisation and export development are among the key pillars of the Bank’s current five-year strategic plan, dubbed Impact 2021: Africa Transformed.
The African Export-Import Bank (Afreximbank) is the foremost pan-African multilateral financial institution devoted to financing and promoting intra- and extra-African trade. The Bank was established in October 1993 by African governments, African private and institutional investors, and non-African investors.
Its two basic constitutive documents are the Establishment Agreement, which gives it the status of an international organization; and the Charter, which governs its corporate structure and operations. Since 1994, it has approved about US$60billion in credit facilities for African businesses, including about UD$8.5billion in 2017. Afreximbank had total assets of US$11.9billion as at 31 December 2017 and is rated BBB+ (GCR) Baa1 (Moody’s), and BBB- (Fitch). The Bank is headquartered in Cairo.