Egyptian Chemical Industries (Kima) has pumped around EGP 7.8 billion into the nitrogen fertilisers’ project to produce ammonia and urea by natural gas in the Upper Egypt governorate of Aswan at the end of May.
The Egyptian producer of petrochemicals will invest another EGP 3.8 billion of the project’s total cost of nearly EGP 11.6 billion, financed from the banking loan it recently obtained, the company’s resources and capital increase, Kima’s chairman Eid El Hout said.
Kima has completed 92% of the project’s total construction, while it has only finalised 84% and 76% of the part dedicated for ammonia and urea production, he highlighted, adding that the project is set to begin trial operation early 2019.
Last May, Kima announced that it achieved about 86% of KIMA 2 project for ammonia and urea production in Aswan.
The company has used around EGP 3.2 billion of the adjusted loan it got from six banks during April 2018, which included raising financing to EGP 7.12 billion, instead of EGP 5.688 billion and extending the loan term to June 2027, El Hout indicated.
The project is being financed by EGP 7.1 billion via loans, EGP 4.45 billion of the company’s resources, and boosting capital with an expected production capacity of 1,200 tonnes of ammonia and 1,575 tonnes of urea per day, he said.
Kima had previously obtained an interest-free loan of EGP 500 million from Chemical Industries Holding Co, he noted, pointing out that the company will pay it off via proceeds of the capital raise.