The Commercial International Bank (CIB) in Egypt has provided $80 million in financing for the Eroglu Knitting project, a subsidiary of Turkey's Eroglu Global Holding. The financing includes a $75 million medium-term loan and a $5 million working capital facility. The loan has a 7-year term and will be used to fund the purchase of machinery and equipment for the project's second and third phases.
The Eroglu Knitting project is a major industrial complex being developed in Qantara West, Egypt, with total investments of $140 million. The project will cover an area of 150,000 square meters and is expected to create over 4,500 jobs. The company aims to become a preferred business partner for leading global brands by providing integrated manufacturing capabilities.
The project will have a production capacity of 24 million pieces of ready-made clothing per year, as well as producing yarns and dyed fabrics. The project's surplus production will be sold to other customers. The project aims to achieve annual revenues of $165 million when it reaches full operational capacity, with 100% of its sales directed towards exports.
The exports will be directed to European markets (50%), the United States (30%), and other markets (20%), which will enhance foreign cash flows and support the competitiveness of Egyptian exports. CIB's financing reflects the bank's confidence in the strength of Egypt's industrial sector and its ability to attract major international investments.
Amr El-Genainy, CIB's Executive Vice Chairman and member of the Executive Board, stated that the financing confirms the bank's commitment to supporting projects that contribute to increasing local production, enhancing exports, and providing job opportunities. The project is considered an important addition to Egypt's textile and garment industry.
Nortin Eroglu, Chairman of Eroglu Global Holding, stated that the group began investing in Egypt in 2007 and has continued to grow, with total investments now reaching $370 million. The partnership with CIB is a new step in this growth, with medium-term financing for machinery and partial financing for raw materials and production requirements.
The partnership aims to achieve exports of $450 million by the end of 2027 and provide around 10,700 job opportunities when fully operational. CIB is seen as a strategic partner for continued growth, supporting investments and sharing ambitions to enhance production and exports from Egypt to global markets.
Key points
- CIB provides $80 million in financing for Eroglu Knitting project in Egypt.
- The project aims to achieve annual revenues of $165 million and create over 4,500 jobs.
- The financing reflects CIB's confidence in Egypt's industrial sector and its ability to attract major international investments.
