EGYPT – The Housing and Development Bank (HDB) has formed a banking alliance with Export Development Bank of Egypt (EBE), Egyptian Arab Land Bank (EALB), Industrial Development Bank (IDB), and the Suez Canal Bank (SCB) have for the establishment of a pharmaceutical factory.

The banking alliance will provide EGP650 million (US$41.48m) syndicated loan to Vetopharm Nerhadou International to finance the pharmaceutical factory in Borg El-Arab city, Alexandria.

The project includes two production units. The first unit will produce all drugs and medical preparations while the second unit will produce biological medicines

HDB Chairperson and Managing Director Hassan Ghanem said that the co-financing contract goes for the benefit of Vetopharm International for Pharmaceuticals and Chemicals.

This falls in line with the state’s plan to raise the capabilities of vital sectors and create new job opportunities in various fields.

The new pharmaceutical factory will comprise two production units, the first of which specialises in the production of all pharmaceutical drugs and medical preparations. The second specialises in the production of biological medicines.

According to Ghanem, the HDB’s share in the syndicated loan stood at EGP120 million (US$7.66m), while the total investment cost of the project is about EGP1.1 billion (US$70.2m). The loan period is seven years.

Ghanem emphasized that, as part of the HDB’s expansion strategy for the coming period, the bank aims to expand in corporate loans to encourage national investments and meet local financing needs. This is especially aimed at the economic sectors that have the greatest impact on the growth of the Egyptian economy.

This falls in line with the state’s plan to raise the capabilities of vital sectors and create new job opportunities in various fields.

Ghanem praised the effective and fruitful cooperation between the participating banks, which reflects the strength and solidity of the Egyptian banking sector.

HD Bank reported a consolidated net profit of EGP 1.058 billion (US$10.08m) in the first half (H1) of 2020, a 5% decline from EGP 1.118 billion (US$71.35m) achieved in H1 2019.

The Egypt-based commercial and investment bank principally operates in the housing and development sector. The institution also contributes to alleviating the housing problem through the establishment of an integrated group of housing projects across Egypt.

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