Ferrum Egypt is negotiating with four banks to secure a loan of EGP 1.8 billion for the construction of a silo factory in East Port Said, Al Borsa News reported, citing unnamed sources familiar with the matter.
The banks are Commercial International Bank (CIB), Banque Misr, National Bank of Egypt (NBE), and First Abu Dhabi Bank (FAB).
Banque Misr and CIB have shown interest in financing the project, while negotiations are ongoing with National Bank and First Abu Dhabi Bank as they conduct due diligence before making the final financing offer, the sources said.
The project requires government approval of a pre-purchase agreement that will allow the Ministry of Supply to purchase 1.4 million tons of storage capacity at the local market price, which will facilitate the completion of financing procedures and the start of the project.
The investment cost of the factory, which will cover an area of 52,000 square meters, is estimated at EGP 2.3 billion. It aims to localize the silo industry in Egypt.
Ferrum Egypt plans to produce about 400,000 tons of storage capacity in the first year of operation, increasing to about 1 million tons by the fourth year.
The company intends to meet local demand for the first three years before exporting to European and African markets.
Ferrum Egypt was established in February 2024 with a capital of EGP 100 million and has major shareholders, including Poland’s Ferrum SA with a 50% share, the Egyptian Holding Company for Silos and Storage with 12%, Samcrete Investment Company with 26%, and East Port Said Development Company with 12%.