Egypt’s NBE Set to Raise $1 Billion to Refinance Debt

The National Bank of Egypt, the country’s largest lender, is close to finalizing a $1 billion loan from a group of banks, according to people familiar with the matter.

NBE has upsized and tightened pricing on the three-year facility that will be partly used to refinance existing debt, the people said, asking not to be identified because the information is private. The lender is seeking to narrow the margin to 230 points from 270 basis points.

The lender was initially planning to raise $750 million from a small group of banks but strong demand prompted it to increase the amount, the people said. Fourteen lenders are participating in the deal, they said.

While declining to comment on the specifics of the transaction, Hesham Elsafty, head of financial institutions and international financial services at NBE, said it “was conducted within the bank’s normal course of business and timed to take advantage of the preferential market and interest rate conditions currently prevailing.”

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