QNB Egypt, acting as Initial Lead Arranger, Facility Agent, Security Agent, and Account Bank, has successfully arranged a long-term syndicated loan amounting to USD 119.4 million for Flex PET (Egypt), a subsidiary of UFLEX Group. The financing will support the second phase of its factory in Ain Sokhna to produce polyethylene terephthalate (PET), with a production capacity of up to 600 tons per day.
The banking syndication, led by QNB Egypt, includes Commercial International Bank (CIB) and Al Baraka Bank Egypt as Initial Mandated Lead Arrangers.
This syndicated financing comes in support of the industrial development sector, which represents one of the key sectors in the Egyptian market and a major driver of sustainable development due to its role in job creation, strengthening local production, and promoting exports.
The syndication reflects QNB Egypt’s commitment to providing financing solutions that meet the needs of this sector and other strategic industries, supporting expansion plans of large corporations and enhancing their ability to accelerate production and operational efficiency.
The financing agreement was signed by Mr. Mohamed Kheirat, Assistant CEO and Head of Business Sectors at QNB Egypt, Mr. Mahmoud El-Bandary;Senior Deputy Head of the Institutional Banking Group at Commercial International Bank (CIB); Mr. Mostafa El-Arousy; Deputy CEO for Corporate Credit and Investment at Al Baraka Bank Egypt; and Mr. Sanjay Tiku; Managing Director of Flex PET. (Egypt).
Commenting on the syndication, Mr. Amr El-Ganainy, Deputy CEO and Executive Board Member of Commercial International Bank (CIB), stated that the bank is proud to participate in this strategic syndicated financing alongside QNB Egypt and Al Baraka Bank Egypt to support the second phase expansion of Flex PET, reflecting their firm commitment to financing industrial projects with sustainable economic viability. He added that this partnership aligns with the bank’s vision to support productive sectors that contribute to deepening local manufacturing and strengthening industry in Egypt.
He further noted that expanding PET production represents a pivotal step toward localizing intermediate industries and reducing reliance on imports, while enhancing the export capacity of Egyptian products, thereby supporting the balance of payments and increasing foreign currency inflows. The project also aligns with sustainability standards by promoting more efficient production processes capable of meeting growing local and international demand.
In this context, Commercial International Bank (CIB) reaffirmed its commitment to delivering integrated and innovative financing solutions that take environmental, social, and governance (ESG) risks into consideration, contributing to balanced long-term returns, quality job creation, and sustainable economic growth in Egypt. The bank will continue working alongside its partners in the banking sector and leading industrial companies to strengthen Egypt’s position as an advanced regional industrial and export hub.
Mr. Hazem Hegazy; CEO and Vice Chairman of Al Baraka Bank Egypt, stated that the project represents a strategic step toward enhancing the export capabilities of Egyptian industry and reducing dependence on imports of essential raw materials, thereby supporting the balance of payments and strengthening the competitiveness of Egyptian products, in line with Egypt Vision 2030 aimed at deepening local manufacturing and promoting sustainable growth. The project also aligns with sustainability trends by supporting more efficient production chains and reducing environmental impact, reflecting the bank’s commitment to financing responsible industrial projects that support long-term economic growth.
For his part, Mr. Sanjay Tiku; Managing Director of Flex PET. (Egypt) and President of Flex Group Egypt, expressed his appreciation for the strong relationship with the consortium banks. He emphasized that the second-phase factory project for bottle-grade PET production, with a capacity of up to 600 tons per day, represents an important step in UFLEX Group’s strategy to expand and diversify its product portfolio and increase its global market share. He also reaffirmed the Group’s commitment to expanding its investments in Egypt, contributing to economic growth and job creation.