Press Releases

With the legal guidance of Sarie-Eldin & Partners (SEP), Egypt Hydrocarbon Corporation (EHC), a petrochemical firm, signed a $289 million on November 22, 2010 to expand operations in "Ain Sohkna" for a chemical complex through a consortium of local banking institutes, which included ﾓBanque Misrﾔ, Commercial International Bank and ﾓAhliﾔ United Bank. * DSC01053.jpg with caption "From left to right: Mr. Mohamed El-Ghannam "Partner" at Baker & McKenzie, Mrs. Amira Sherif "Senior Associate and Head of Banking & Finance Department" at Sarie-Eldin & Partners, Mr. Waleed Hassouna "Deputy General Manager" at Banque Misr, Mr. Mohamed Younes "Head of Credit Department" at Banque Misr, Mr. Mohamed Abbas "Vice President" at Banque Misr, Dr. Hani Sarie-Eldin "Managing Partner" at Sarie-Eldin & Partners, Mr. Basil El Baz "Chairman & CEO and C.I.B. Head Office" at Egypt Hydrocarbon Corporation (EHC) Company and Ms. Omayma Farahat "Senior Manager and Head of Corporate Banking" at Banque Misr." The deal was described as ﾓone of the most important this yearﾔ for SEP, according to Amira Sherif, SEP Senior Associate and Head of the Banking and Finance Department, who was in charge of structuring, reviewing, and negotiation of the loan. Sherif further explained that what made the deal so significant was neither the size nor that it was dealt with in foreign currency, but because "it is a model project finance transaction in one of the most promising industries,ﾔ she highlighted. Walid Hassouna, Deputy General Manager, Head of Project Finance, Syndications, and Structured Finance, Corporate Banking Group of "Banque Misr" added that this transaction was "one of the few that was closed under international standards while still in the local market". Commenting further on its importance, the EHC project, he stated, will "cater to a product with a huge deficit in Africa and help transform Egypt into a hug in the mining grade ammonium nitrate". Hassouna explained that his bank was in charge of assembling a team for the transaction, and that "Banque Misr" had "a preference toward working with SEP due to their strong previous experience with similar transactions". He continued: "SEP is an excellent legal council when it comes to commercial baking and lending thanks experience, especially when it comes to highly structured deals". * DSC01040.jpg with caption "From left to right: Mr. Mohamed Abbas "Vice President" at Banque Misr and Mr. Basil El Baz "Chairman & CEO" at Egypt Hydrocarbon Corporation (EHC)" Emphasizing additional strong suits SEP brought in closing the deal, Hassouna added, "their distinct blend of legal and commercial thinking allowed us to move quickly". Sherif was not shy in addressing the issue of time constraints as a main hurdle: "Time was of the essence in this transaction", and in fact, it was carried out in "record time". Racing against the clock, as the lendersﾒ legal counsel, SEP was charged with ﾓthe preservation of their interests, finding the solutions to points of conflict between the business requirements and interests of the lenders and the borrower as well as ensuring that all relevant regulations were correctly implemented and reflected in the documents,ﾔ she explained. Sherif went on to add, ﾓProject Finance is not directly addressed as a model in the existing regulations,ﾔ creating a further obstacle. As such, SEP was required to think quickly on its feet and ﾓcreate the structure, making use of available regulations and addressing the specific aspects for which none had been adoptedﾔ, which illustrates the firmﾒs ability to adapt and react swiftly to distinct challenges. Basil El-Baz, EHC chairman and CEO, noted that such deals ﾓcan require up to five years to hammer outﾔ, but thanks to SEP, shouldered by the banking trio, the agreement was wrapped up in just three short years. * DSC01022.jpg with caption "From left to right: Mr. Mohamed Abbas "Vice President" at Banque Misr and Mr. Basil El Baz "Chairman & CEO" at Egypt Hydrocarbon Corporation (EHC)" Notwithstanding such impasses, Sherif stated that SEP was able to further crystallize its ﾓtechnical knowledge of the mechanics and requirements of the Borrowerﾒs Industryﾔ through the EHC transaction. She concluded by mentioning the pleasure of having collaborated with the local Egyptian banks under this transaction, and that the Borrowerﾒs team has ﾓremarkable experienceﾔ as well as a "solid and very effective finance arm". "Our involvement has allowed us to support and participate in this very important industry and its impact on the Egyptian economy", she added. Furthermore, she pointed out that clearly, last, but not least, the involvement of Dr Hani Sarie Eldin, Managing Partner of SEP, as well as her associate Mahmoud Gharabawy were absolutely instrumental in ensuring that the transaction was seamlessly managed and brought to a close.