Ahli United Bank (AUB) and Arab Banking Corporation (ABC) have successfully closed the senior phase for a $480 million, 15-year syndicated debt finance facility for Damietta International Port Company, SAE (Dipco).

AUB and ABC are the "Initial Mandated Lead Arrangers" for the loan, whose proceeds will be used to finance 75 per cent of project capital expenditures and capitalisation of interest up to the completion date of the first phase.
 
The duo has been joined in the facility by African Development Bank, Banque Misr (BM) and National Bank of Egypt as Mandated Lead Arrangers.

The transaction launched into general syndication on February 4 through ABC and AUB (International Bookrunners) and BM (Local Egyptian Bookrunner).

Dipco was incorporated in 2006 with the purpose of executing a 40-year concession to construct, develop and operate a state-of-the-art greenfield container terminal within the existing Port of Damietta on Egypt’s Mediterranean coast, 70 kilometres west of Suez Canal.

The project is expected to cost $650 million and includes capital dredging of port basin, turning circle and access channel; construction of quay walls; purchase and installation of equipment and development of the terminal area and container yard.

Its estimated handling capacity of 4 million TEUs (after second phase of completion) will make the terminal one of the largest trans-shipment facilities in the Mediterranean and one of the few capable of handling the new generation of large containerships.-TradeArabia News Service