29 May 2014
Clifford Chance and Matouk Bassiouny advise on landmark Egyptian EGP1.8 billion Islamic financing for Al Sharkeya Sugar Manufacturing
Increases Al Sharkeya Sugar Manufacturing's capacity to meet 50% of Egypt's total sugar needs
Clifford Chance and Matouk Bassiouny have together advised Abu Dhabi Islamic Bank, Banque Audi, Banque Misr, as Senior Mandated Lead Arrangers, and the Islamic Corporation for the Development of the Private Sector (ICD), as Mezzanine Mandated Lead Arranger on and Islamic Shari’a compliant financial package of around EGP1.8 billion extended to Al Sharkeya Sugar Manufacturing S.A.E (ASSM) for the construction of a sugar production facility in Al Sharkeya Governorate, Egypt.
The finance package (which also included a working capital facility extended by shareholders of ASSM) was signed on Sunday 27 April 2014 with an ijara/istisn’a senior facility of EGP1.5 billion and a mezzanine one for US$32 million.
Commenting on the deal, lead partner from Clifford Chance, Mohamed Hamra-Krouha stated: "Clifford Chance is delighted to be involved in this landmark Egyptian financing, a positive sign that Egypt is once again looking to global financial debt markets to service the needs of its 90+ million population." Lead partner from Matouk Bassiouny, Mahmoud Bassiouny added: "Matouk Bassiouny is proud to be adviser to the financiers to Al Sharkeya Sugar Manufacturing on a landscape-changing deal of this kind."
Once construction is complete, the sugar manufacturing facility is expected to cover around 50% of Egypt’s sugar needs. The participation of local and regional banks and financial institutions is a milestone in the development of the Egypt's Islamic finance market.
Clifford Chance and Matouk Bassiouny jointly structured the EGP1.8 billion facility package, drafted all the relevant senior and mezzanine facility documents and lead the negotiations on behalf of the senior and mezzanine facilities’ providers. The Matouk Bassiouny team was led by partner Mahmoud Bassiouny (Finance & Projects) and the Clifford Chance team was led by partner Mohamed Hamra-Krouha.