Korra Energi Gets Kuwait Finance House Credit Facility for Egypt Project

Korra Energi obtained a total credit facility from Kuwait Finance House (KFH) amounting to EGP 300 million (~US$6.1 million) and US$15.56 million for its 500-kV power transmission line linking the Gulf of Suez, according to a bourse disclosure.

The company secured EGP 160 million (~US$3.2 million) and US$2.76 million for issuing letters of guarantee in favor of the Egyptian Electricity Transmission Company (EETC).

Moreover, Korra Energi received a US$12.8 million letter of credit (LC) and EGP 140 million (~US$2.8 million) in an overdraft loan to settle supplier payments for the project and refinance external documents, as well as to cover the project's cash flow shortfall.

Through its alliance with High Dam Electrical & Industrial Projects Co (HIDELECO), the recently listed company was awarded one of the largest electricity transmission projects currently underway in Egypt, with total investment ranging from EGP 12 to EGP 14 billion (~US$244-US$284 million).

The venture has been divided into eight lots, which attracted competition from major local and international companies and consortia.