In a move reflecting growing support for Egypt’s industrial sector and productive investments, a banking consortium comprising QNB Egypt, Commercial International Bank – Egypt (CIB), and Al Baraka Bank Egypt announced the signing of a long-term syndicated loan agreement worth USD 119.4 million in favor of Flex PET (Egypt) for Industry, a subsidiary of UFLEX Group, to finance the second phase of the company’s manufacturing facility in Ain Sokhna.
Structure of the Banking Consortium and Participating Roles
Under the agreement, QNB Egypt acts as the Initial Mandated Lead Arranger, Facility Agent, Security Agent, and Account Bank, while Commercial International Bank (CIB) and Al Baraka Bank Egypt participate as Initial Mandated Lead Arrangers in structuring and providing the long-term syndicated financing.
The facility aims to support Flex PET’s industrial expansion through the establishment of an extension to the plant’s first phase, contributing to increased production capacity and strengthening the company’s manufacturing capabilities within the Egyptian market.
Project Details and PET Production Expansion
The project focuses on developing the second phase of the factory dedicated to the production of Polyethylene Terephthalate (PET), with a targeted production capacity of up to 600 tons per day, supported by total investments estimated at USD 119.4 million.
The financing package also includes support for the company’s working capital requirements, ensuring operational continuity and enhanced production efficiency amid rising demand for high-quality PET products widely used in bottle manufacturing and packaging applications.
This financing comes within the broader framework of supporting Egypt’s industrial sector and enabling locally operating companies to expand production capacity, meet growing domestic and international demand, and enhance the competitiveness of Egyptian industry.
Agreement Signing Attended by Senior Banking and Corporate Executives
The signing ceremony was attended by senior executives representing the participating institutions. The agreement was signed by:
- Mohamed Khairat, Assistant Chief Executive Officer and Chief Business Officer at QNB Egypt
- Mahmoud El-Bandary, Senior Deputy Head of Institutional Relationships Group at CIB
- Mostafa El-Arousi, Deputy CEO for Corporate Credit and Investment at Al Baraka Bank Egypt
- Sanjay Tiku, Managing Director of Flex PET
QNB Egypt: Financing Major Industries Drives Economic Growth
Commenting on the agreement, Mohamed Bedeir, Chief Executive Officer of QNB Egypt, stated that the syndicated loan represents an important step toward strengthening Egypt’s industrial sector, particularly vital industries that generate tangible economic returns and play a positive role in stimulating national economic activity.
He emphasized the bank’s strong belief in financing large-scale industrial projects that contribute to job creation, increased local production, and meeting both domestic and export market demand for high-quality products, particularly PET materials used in bottle manufacturing.
Bedeir added that the financing reflects QNB Egypt’s commitment to supporting leading companies operating in the Egyptian market and enabling their expansion and growth, thereby strengthening the national economy and improving the efficiency of local industries.
He further noted that cooperation with CIB and Al Baraka Bank Egypt demonstrates the Egyptian banking sector’s capability to deliver innovative, multi-currency financing solutions tailored to the needs of large corporates, whether for project development or working capital financing.
The project, he explained, aligns with QNB Egypt’s broader strategy to support various economic sectors including industry, trade, services, and small and medium-sized enterprises, through integrated banking services that help drive economic momentum and reinforce Egypt’s position as a regional industrial and commercial hub.
CIB: Supporting Local Manufacturing and Boosting Export Capacity
For his part, Amr El-Ganainy, Deputy CEO and Executive Board Member of Commercial International Bank – Egypt (CIB), expressed the bank’s pride in participating in this strategic syndicated financing alongside QNB Egypt and Al Baraka Bank Egypt to support Flex PET’s industrial expansion.
He stressed that the partnership aligns with the bank’s vision of supporting economically viable productive sectors that deepen local manufacturing and strengthen Egypt’s industrial base.
El-Ganainy highlighted that expanding PET production represents a pivotal step toward localizing intermediate industries, reducing reliance on imports, and enhancing Egypt’s export capabilities—thereby supporting the balance of payments and strengthening foreign currency inflows.
He added that the project also aligns with sustainability standards by supporting industries characterized by higher production efficiency and the ability to meet growing local and global demand.
The bank, he affirmed, remains committed to providing integrated and innovative financing solutions that consider environmental, social, and governance (ESG) risks, achieving balanced long-term returns, creating quality employment opportunities, and supporting sustainable economic growth. CIB will continue working closely with banking partners and leading industrial companies to reinforce Egypt’s position as an advanced regional industrial and export hub.
Flex PET: Strategic Expansion and Global Market Growth
In the same context, Sanjay Tiku, Managing Director of Flex PET and President of Flex Group Egypt, expressed appreciation for the strong partnership with the consortium banks, noting that the establishment of the second phase of the PET production facility—dedicated to bottle-grade material with a capacity of 600 tons per day—marks a significant milestone in UFLEX Group’s strategy to diversify its product portfolio and expand its global market share.
He added that the project underscores the group’s commitment to increasing investments in Egypt, contributing to economic growth and generating new employment opportunities.
Al Baraka Bank Egypt: Project Supports Egypt Vision 2030 and Industrial Sustainability
Meanwhile, Hazem Hegazy, Chief Executive Officer and Vice Chairman of Al Baraka Bank Egypt, stated that the project represents a strategic step toward strengthening Egypt’s industrial export capabilities and reducing reliance on imported core raw materials, thereby supporting the balance of payments and enhancing the competitiveness of Egyptian products.
He noted that the project aligns with the objectives of Egypt Vision 2030, which aims to deepen local manufacturing and promote sustainable economic growth.
Hegazy further emphasized that the project is consistent with sustainability trends through supporting more efficient production chains and reducing environmental impact, reflecting the bank’s commitment to financing responsible industrial projects that promote long-term economic development.
A Model of Banking Cooperation Supporting Industrial Development
The syndicated financing represents an advanced model of cooperation among banks operating in Egypt to support major industrial projects, contributing to increased domestic production, stronger industrial exports, and job creation, while supporting national efforts to position Egypt as a regional industrial and export hub capable of attracting global investments and achieving sustainable economic development.
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