Shearman & Sterling has represented both the sponsor, private equity firm Citadel Capital, and project company Egyptian Refining Company (ERC) on the $3.7 billion financing for the redevelopment of the latter's refinery near Cairo. Allen & Overy and Slaughter and May are among firms advising the lenders in the $2.6 billion debt financing part of the deal.
The Shearman & Sterling team was led by project development and finance partner Tim Pick, and included finance partner Patrick Clancy.
Led by Tokyo partner Adam Moncrieff, Allen & Overy advised the Japan Bank for International Cooperation, the Export-Import Bank of Korea, and Nippon Export and Investment Insurance on the financing. The firm also worked with Slaughter and May as the legal counsel to the European Investment Bank and the African Development Bank.
One of the largest project finance deals to date in North Africa, the venture is predicted to generate more than 4.1 million tonnes of refined products and oil derivatives annually, including more than 2.3 million tonnes of Euro V diesel per year. This is expected to cut Egyptian diesel imports by up to 50 percent, said Reuters.
"Having been personally involved since the project's inception in 2006, I am delighted we have finally reached this milestone," said Pick in a statement. "This is the result of a huge team effort from Citadel Capital, the Egyptian Refining Company, the project finance advisory team at Société Générale and us—all working closely together, not to mention the hard work of the various equity investors, the lenders, the EPC contractor and their respective advisers."
“This deal will deliver economic benefits to Egypt and its local community, while cutting the production of sulphur and improving the air and water quality in greater Cairo by producing less greenhouse gas emissions,” said Allen & Overy’s Moncrieff.
The refinery, set to begin operations in 2016, is predicted to contribute $300 million in direct benefits to the state and stimulate job creation.
Kanishk Verghese is North Asia journalist at ALB. Follow us on Twitter: @ALB_Magazine.
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