Banque du Caire has entered into a new financing contract with the Kandil Glass Group to support the capital growth of the company, which includes the development of a new glass production plant in the Ataqa Free Zone in Suez governorate.
The financing package involves a six-year medium-term loan of $16.7 million as an investment project worth a total of up to $20.4 million to set up Kandil Glass Industries in the free zone. The agreement also offers $8 million and EGP 85.6 million in additional financing for the existing Kandil Glass to fund capital expenditure (CAPEX).
The new plant is projected to produce 100 tonnes per day and will be distributed to domestic and global markets following the strategy of Egypt to entrench local production and increase industrial exports.
Hussein Abaka, the Managing Director and CEO of Banke du Caire, claimed that the deal is in line with the vision of the bank to cater to the industrial sector as one of the drivers of sustainable economic growth, especially value-added manufacturing operations.
He observed that the partnership indicates the trust that the bank has placed in the national industrial players and its commitment to offer a complete financing solution that can help increase the production capacity, competitiveness, and provide employment.
Bahaa El Shaffei, the Deputy CEO of Banque du Caire, indicated that the bank is eager to play its developmental role by funding industrial projects that have a concrete economic value.
He referred to the Kandil investment as a prospective venture that is based on high-tech industrial technologies and aims at developing export markets, thus enhancing the regional and international competitiveness of Egyptian industry.
Mohamed Shaker, Chief Corporate and Structured Finance Officer at Banque du Caire, has stated that the agreement highlights the model that the bank follows in supporting productive sectors and supports its stance as a financial institution dedicated to supporting industrial development.
Mohamed Lashin, Head of Corporate Banking Group at Banque du Caire, further pointed out that financing the setting up of Kandil Glass Industries in the Suez Free Zone, which is an export-oriented project, is in line with the strategy of the state to promote exports and value-added industries.
On his part, Khalil Kandil, the Chairperson of Kandil Glass, indicated that it is not a funding arrangement, as he termed the finance a strategic partnership that will help the group increase the production capacity and enhance its presence in the local and regional markets.
He added that the new plant signifies a technological advancement in the glass-making business in Egypt, allowing the firm to respond to the increase in demand without sacrificing the standard of quality and competitiveness.
Ahmed Shaker, the Head of Finance and Banking Relations at the Kandil Glass, stated that the deal was a sign of good collaboration between the banking and industrial spheres of Egypt.
He noted that the funding will improve the liquidity position and cost efficiency of the group, enabling it to concentrate on digital transformation and operational innovation.
The majority of the partnership is a part of the overall Kandil Group approach to cement its leadership in the glass industry in Egypt and the Middle East, as well as help the nation strengthen exports and productive capacity.
It also underscores the ongoing role of Banque du Caire in financing industrial investments and being a strategic partner in sustainable economic development.
