International Consortium Extends $341 mn Loan to Upgrade Egypt's Energy Infrastructure

A group of international lenders has extended a $341 million facility to Sonker, an Egyptian company providing hydrocarbon storage and bunkering, to significant upgrade of the country’s oil and gas infrastructure.

As part of a consortium, the European Bank for Reconstruction and Development (EBRD) is extending a $72 million senior loan and a $22 million mezzanine loan to the company, while the International Finance Corporation (IFC), a member of the World Bank Group, is providing a $70 million senior loan along with a $22 million mezzanine loan and mobilising $52.5 million from other investors, EBRD said in a note published Thursday.

In addition, the Commercial International Bank (CIB) of Egypt, the country’s largest private-sector bank, is availing with $28 million and the equivalent of $44 million in Egyptian pounds loan as well as a $30 million ‘Credit Support Instrument Facility’.

Sonker operates oil and gas storage and bunkering facilities at the Ain Sokhna Port on the Red Sea. Installing the necessary infrastructure is crucial for energy security in Egypt as it will increase storage and handling capacity for imports of gasoil, liquefied petroleum gas (LPG) and liquefied natural gas (LNG), EBRD said.

The company will use the funds to construct and operate a bulk-liquids terminal for the import and storage of gasoil, LPG in the third basin of Ain Sokhna Port. The new infrastructure will accommodate the docking of two floating storage and regasification units and the handling of LNG imports to the nearest national gas grid.