Bank NXT has signed a significant EGP 2.1bn credit facility agreement with Ezz Elarab Elsewedy Investments. This deal aims to finance the expansion of Ezz Elarab Elsewedy's automotive factories and the establishment of a new automotive paint plant. The transaction is part of Ezz Elarab Elsewedy's plans to expand its industrial operations and strengthen production capabilities. The agreement also seeks to deepen the localisation of automotive component industries in the Egyptian market.
Ezz Elarab Elsewedy Automotive Factories, the industrial and manufacturing arm of the investment group, spans 70,000 square metres in the New Industrial Zone. The facility has an annual production capacity of 40,000 units in its first phase. The company plans to double this capacity annually once the new paint plant begins operations. This expansion will strengthen its ability to meet local market demand and increase exports.
Mohamed Saleh, Chief Executive Officer of Ezz Elarab Elsewedy Investments, highlighted the significance of the agreement. He stated that this deal is a strategic milestone and a long-term partnership built on a shared belief in strengthening the national industry through bold investment. The new paint plant and the expansion of Ezz Elarab Elsewedy Automotive Factories will deepen industrial integration and localize supply chains.
Ahmed Fathy, Chief Financial Officer of Ezz Elarab Elsewedy Investments, noted that the credit facilities reflect the strength of the Group's financial position and the banking sector's confidence in its creditworthiness. This financing comes within a balanced financial strategy that seeks to diversify funding sources, optimize their cost, and channel them into investments with sustainable operating returns.
For Bank NXT, the deal reflects a continued focus on expanding its corporate banking activities and financing large-scale projects in Egypt. Amr Gamali, Deputy CEO – Business at Bank NXT, stated that the partnership reaffirms the bank's commitment to supporting private sector investment and expansion plans. The bank believes in the pivotal role of the banking sector in enabling businesses to execute their investment plans and contribute to economic growth.
Shereen Elgazzar, Chief of Corporate, Investment Banking & Financial Institutions at Bank NXT, noted that this transaction represents an important step in the development of Bank NXT's corporate banking business. It demonstrates the team's ability to execute large-scale credit transactions efficiently. The deal also reflects the bank's expertise in financing investments and expansion plans.
Bank NXT, formerly known as aiBANK, was established in 1974 and commenced operations under the Central Bank of Egypt in 1978. The bank operates 36 branches nationwide and is expanding its ATM network across key locations. Bank NXT's majority shareholder, EFG Holding, is a financial institution with a legacy of over 40 years, operating in six countries across two continents.
Key points
- Bank NXT signs EGP 2.1bn credit facility with Ezz Elarab Elsewedy Investments to finance automotive expansion.
- The deal aims to deepen the localisation of automotive component industries in the Egyptian market.
- The expansion will strengthen Ezz Elarab Elsewedy's ability to meet local market demand and increase exports.
