Swiss Banks Boost Financing to Egypt’s Textile Modernization Program to EUR 375 Million

Swiss Banks Boost Financing to Egypt’s Textile Modernization Program to EUR 375 Million

(IN BRIEF) Credit Suisse AG, UBS Switzerland AG, and other Swiss banks have collectively increased their financing commitment to the Cotton, Spinning, Weaving & Garment Holding Co in Cairo, Egypt, to EUR 375 million as part of the country’s textile modernization program. The Credit Facility Agreement, backed by a sovereign guarantee from the Ministry of Finance of the Arab Republic of Egypt and 95% coverage from the Swiss Export Risk Insurance (SERV), aims to support the purchase of additional textile machinery and equipment from Swiss and European producers. Acting as SERV agent and facility agent, Credit Suisse, along with UBS Switzerland, plays a key role in facilitating this initiative, which aligns with Egypt’s governmental efforts to modernize its spinning and weaving sector.

(PRESS RELEASE) ZURICH, 10-Feb-2023 — /EuropaWire/ — Credit Suisse, a company of UBS Group, UBS Switzerland and other Swiss banks agreed to increase their existing Credit Facility Agreement with Cotton, Spinning, Weaving & Garment Holding Co, Cairo, Egypt, by EUR 20m to EUR 375m, effective December 7, 2023. The increase was signed on April 13, 2023.

The Credit Facility Agreement continues to benefit from a sovereign guarantee of the Ministry of Finance of the Arab Republic of Egypt. The financing has a term of ten years and receives a 95% cover from the Swiss Export Risk Insurance (SERV). The purpose of the increase to the loan is to finance the purchase of various additional textile machineries and ancillary equipment from existing and new Swiss and European textile machinery producers.

Credit Suisse acts as SERV agent and facility agent and, alongside UBS Switzerland, as original SERV covered lenders and mandated lead arrangers. The project and the SERV covered credit facility are part of the governmental modernization program of the spinning and weaving sector in Egypt.

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SOURCE: CREDIT SUISSE