CIB – Egypt Provides $80 Million Financing for Eroglu Knitting Project to Support Group’s Expansion in Egypt
As part of its role in supporting the industrial sector and enhancing foreign direct investment flows into the Egyptian market, Commercial International Bank – Egypt – CIB has successfully provided total financing of $80 million to EMS Eroglu Knitting, a subsidiary of Turkey’s Eroglu Global Holding, to finance the completion of the group’s integrated industrial complex in the West Qantara area.
The financing includes a $75 million medium-term loan, in addition to a $5 million working capital facility. The loan has a seven-year tenor and is allocated to finance the purchase of machinery and equipment for the second and third phases of the project.
The financing comes as part of CIB’s strategy aimed at supporting major industrial investments with high added value, enhancing the productive and export capacities of the Egyptian economy, as well as supporting global companies seeking to expand their investments in the local market.
The EMS Eroglu Knitting project is being established with total investments of up to $140 million on an area of approximately 150,000 square meters in West Qantara. The project is planned to become one of the largest integrated industrial complexes in Egypt, providing more than 4,500 job opportunities.
The company aims to become the preferred business partner for leading global brands through its integrated manufacturing capabilities, which extend from cotton as the primary raw material, through spinning, knitting and dyeing processes, to the production of ready-made garments using the latest equipment and technologies employed in the textile industry.
Upon completion of all phases, the project is expected to reach an annual production capacity of approximately 24 million pieces of ready-made garments, in addition to the production of yarns and dyed fabrics, with surplus production to be sold to other customers.
The project also targets annual revenues of approximately $165 million once it reaches full operational capacity, with 100% of its sales directed toward exports, including approximately 50% to European markets, 30% to the United States, and 20% to other markets. This will contribute to increasing foreign currency inflows and supporting the competitiveness of Egyptian exports.
Amr El-Ganainy, Deputy CEO and Executive Board Member of Commercial International Bank – Egypt (CIB), said: “This financing reflects the bank’s confidence in the strength of the Egyptian industrial sector and its ability to attract major international investments, particularly in the spinning, weaving and ready-made garment sectors. It also underscores the bank’s commitment to supporting projects that contribute to increasing local production, boosting exports and creating job opportunities. We view the EMS Eroglu Knitting project as an important addition to Egypt’s spinning, weaving and ready-made garment industry, particularly given its reliance on an integrated production model and the fact that its entire production is directed toward foreign markets.”
He added: “CIB is committed to building long-term partnerships with local and international investors and providing financing solutions tailored to the nature of major projects and their expansion plans, in a manner that supports the competitiveness of the Egyptian economy and strengthens Egypt’s position as a regional hub for industry and exports.”
Nurettin Eroglu, Chairman of the Board of Eroglu Global Holding, said: “The Eroglu Group began its investment in Egypt in 2007 by establishing the group’s first factories in Ismailia. Eroglu Global Holding continued to grow by establishing the DNM factory in the Public Free Zone in Damietta in 2009, with investments of $100 million, until it became the leading exporter in the sector. We then expanded it with an investment of $60 million.
“With the support we have received from the Egyptian state and its encouragement of investment, we moved into a new phase by establishing the Eroglu Knitting (EMS) and Eroglu Garments factories in the Suez Canal Economic Zone, with investments of $210 million, bringing our total investments to $370 million.
“Today, we are taking another step forward with CIB in line with this growth, through medium-term financing for the machinery for the second and third phases of the Eroglu Knitting (EMS) factory, as well as partial financing for raw materials and production supplies. This partnership supports our ambition to achieve exports of $450 million by the end of 2027 and provide approximately 10,700 job opportunities upon full operation.
“We see CIB as a strategic partner in our continued growth journey, not only keeping pace with our investments but also sharing our ambition to enhance production and exports from Egypt to global markets. Through this partnership, we are taking our long-standing expertise in the textile industry toward the future, relying on an integrated production system based on the latest technologies and strong export capabilities serving major global brands. This further strengthens the position of the Egyptian market and highlights its promising potential.”
read more
