Dipco project in general syndication

Initial mandated lead arrangers Ahli United Bank (AUB) and Arab Banking Corporation (ABC) have successfully closed the senior phase of a US$480mn 15-year syndicated debt finance facility for Damietta International Port Company (Dipco).

Joining at senior level as additional mandated lead arrangers are African Development Bank, Banque Misr and National Bank of Egypt.

The deal is in general syndication, being co-ordinated by international bookrunners ABC and AUB, and local Egyptian bookrunner Banque Misr.

The funds are being used to finance 75% of project capital expenditures and capitalisation of interest up to phase one completion date.

Dipco was incorporated in 2006 with the aim of carrying out 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, 70km west of the Mediterranean entrance to the Suez Canal.

Expected costs of the project are US$650mn, with include construction of quay walls, capital dredging of the port basis, purchase and installation of equipment and the development of the terminal area and container ships.

The terminal is set to be one of the largest trans-shipment facilities in the Mediterranean, as well as one of the few that can handle the new generation of large containerships.