Nine banks to partially fund Orascom cement factory

Nine banks to partially fund Orascom cement factory
Published: 11 September 2007

With the Orascom Group to construct a new white and grey cement factory in Mascara (west of Algeria) estimated at US$538.5m, the project is to be partially funded by nine private and state-owned banks which signed yesterday a convention with the group.

The signature ceremony took place at Sofitel Hotel in Algiers. It was attended by Orascom Algerian Cement Company OACC Mr. Ayman Anis as well as CEOs of CPA, BNA, CNEP, BADR, and BDL, for the state-owned banks, and CEOs of CITY Bank, Société Générale, BNP Paribas and Arab Bank for private banks.

The CEO of Algeria People’s Credit (CPA) Mr. Mohamed Djelab said CPA and City Bank are the main subsidizers of the project as CPA allocated about 7.779 bn AD whereas City Bank participated with 862m AD as direct collection and 1.438m AD under the guarantee of the Danish foreign trade insurance company. 

The white and grey cement factory in Mascara province is to produce about 550,000t of white cement a year, and 2.5Mt of grey cement, and intended to employ about 800 workers.