Elsewedy Electric Company is one of Egypt’s longest established corporates, having been set up as an equipment trading firm in 1938. It has subsequently expanded into construction, engineering, wire, cable and digital solutions and operates 31 production facilities around the world out of 48 international offices.
So, Elsewedy’s management team has had long experience in dealing with corporate challenges, but the fallout from Covid-19 and the inflationary forces subsequently unleashed have been a game-changer.
The pandemic interrupted the firm’s plans to expand into new export markets in north America and Europe. These plans were further disrupted by the effects of Russia’s invasion of Ukraine, surging global interest rates and a devaluation of the Egyptian pound.
Therefore, access to finance has been key. In September, the firm signed a Shariah-compliant multipurpose syndicated facility to fund expansion. The deal was lead managed by ADIB Egypt with participation from Banque Misr, Al Baraka Bank, Al Ahli Bank of Kuwait, MidBank, the Industrial Development Bank, the Agricultural Bank of Egypt and the Egyptian Arab Land Bank. ADI Capital acted as sole financial advisor and bookrunner for the transaction.
This is the first time that Elsewedy has tapped a syndicated facility, a decision that may encourage its peers in the Middle East and north Africa to follow suit
The initial loan is based on a revolving mudaraba and provided E£2 billion ($65 million) to support Elsewedy’s ambitions to open new export routes. There was a E£1 billion tap in January 2023. This is the first time that Elsewedy has tapped a syndicated facility, a decision that may encourage its peers in the Middle East and north Africa to follow suit.
“We appreciate the cooperation with all partners in this process, which comes at a time when we are keen to achieve further growth across our markets in Egypt, the Gulf and Africa, where the energy sector is one of the main sectors representing a major source of foreign investment and contributes a great deal to the gross domestic product,” said Ahmed El Sewedy, chief executive and managing director of Elsewedy Electric, on completion of the transaction.
