Fertilizer finance from Afreximbank: The African Export-Import Bank (Afreximbank) has agreed to extend a USD 400 mn loan to the state-owned Chemical Industries Holding Company (CIHC) for a USD 1.2 bn phosphate fertilizers complex in El Wadi El Gedid governorate, a CIHC source confirmed to Enterprise. As ha rq Business originally reported the news, citing two government sources.

About the project: CIHC subsidiary El Wady for Phosphate Industries and Fertilizers (Waphco) will build, operate, and maintain the complex. Our source told us the project will require around USD 1.2 bn to establish, rather than USD 1 bn as reported by Asharq. The plant is set to produce some 1 mn tons annually of phosphoric acid — a key feedstock for phosphate fertilizers. Construction is set to kick off in 1H 2024 assuming the financing is in place, according to our source.

Where’s the rest of the funding coming from? Talks are underway to secure the majority of the remaining finance from local and international lenders, our source said, adding that CIHC will also chip in some of the proceeds from the sale of EGX-listed Paint and Chemical Industries (Pachin) to National Paints Holding.

Advisors: Bank of Alexandria is the financial advisor negotiating the facility with Afreximbank and other lenders on behalf of the government.

This is just one of a number of phosphate factories under consideration: Three other fertilizer and phosphoric acid plants have been proposed by a mix of local and international companies. The facilities would be based in an area of the Eastern Desert known as the Golden Triangle for its high concentration of phosphates.

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