Suez Canal Heralds Revival of Egypt’s Syndicated Loans, CIB Says - Bloomberg

Suez Canal Heralds Revival of Egypt’s Syndicated Loans, CIB Says - Bloomberg:



"The biggest expansion of Egypt’s Suez Canal since it opened in 1869 will boost syndicated loan deals in North Africa’s biggest economy, according to the nation’s largest publicly traded bank.



Syndicated lending in Egypt rose 61 percent in the first nine months to $2.9 billion, according to data compiled by Bloomberg, after a $1.4 billion deal on Sept. 30 boosted what was the lowest total since 2003. The market will grow 25 percent next year, Commercial International Bank Egypt SAE said in an e-mailed response to questions Oct. 15.



Banks are preparing for a surge in lending as the government spends about $8.4 billion digging a second waterway to ease congestion at the canal and develop the area to offer logistic services, CIB’s Managing Director Hisham Ezz Al Arab. Lenders have relied on high yielding government debt to bolster earnings as demand for corporate credit dried up in the aftermath of the 2011 ouster of President Hosni Mubarak."



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