Advanced Energy Systems, an independent Egyptian oil services company has received grant, referred to as “syndicated loan” up to the tune of US$170 million from the European Bank for Reconstruction and Development, EBRD.
Referred to as the first of its kind in the southern and eastern Mediterranean history, include $28 million targeted at encouraging any company with the best environmental, safety and health standards especially in the local oil and gas industry.
The $170 million also includes a US$25 million Islamic finance tranche provided by the Islamic Corporation for the development of the private sector and is the first EBRD joint project with ICD and the Arab International Bank.. In addition to providing financing, AIB will undertake the roles of global facility agent, conventional facility agent and security agent. Financing will also be provided by Société Arabe Internationale de Banque, Al Ahli Bank of Kuwait, Credit Libanais S.A.L., AlexBank and the Federated Project and Trade Finance Core Fund.
For a very long time, Egypt has suffered frequent shortages of the natural gas that supplies the country’s power plants. The introduction of offshore drilling equipment is also expected to help foster the development of domestic natural gas production, reinforce energy security, and reduced impact on the environment.
Lorenz Jorgensen, EBRD Loan Syndications Director was quoted to have expressed pride and confidence in ADES.
Chief Executive of ADES, Dr. Mohamed Farouk, was also quoted to have said that the syndication was instrumental to ADES’ growth plan through debts refinancing, acquisition of new assets as well as providing the necessary working capital.
“Having these eight financiers as our lenders with more than 50 per cent of the money coming from overseas is testimony to ADES’ strategy and performance in the current tough market. This loan will enable us to remain the market leader for offshore drilling services in Egypt.”
“We are very pleased to work with the EBRD as a major partner in supporting our member countries. The ADES transaction is the first product of cooperation between the ICD/IDB Group and the EBRD, and a concrete example of how Islamic financing can meet our clients’ aspirations. We are delighted to bring our support to ADES as it takes its fortunes to the next level and this will also help Egypt, a key member country of the ICD, to address its energy challenge” Khaled Al Aboodi, CEO of ICD, was quoted to have said.
Adel Ezzat, AIB General Manager, Corporate Banking Group was equally reported to have expressed delight saying that the “the successful closure of this transaction, the first cooperation between the AIB, EBRD, ICD and major players in the domestic and international banking sectors, shows confidence in ADES’ strategic growth over the past five years, in which the cooperation between AIB and ADES has grown and developed. It also reflects AIB’s role in supporting the Egyptian economy by providing banking facilities to firms in strategic economic sectors such as power, oil and gas. AIB sees this transaction as the start of a fruitful cooperation that will benefit the economies of AIB, EBRD and ICD member states.”
The EBRD has invested more than €1 billion in Egypt through 27 projects (including regional ones) since the Bank began working in the country at the end of 2012.
