Egyptian tycoon Ahmed El Sewedy-led El Sewedy Electric to secure $102.5-million credit facilities from seven banks

El Sewedy Electric, a multinational cable and electrical equipment manufacturer led by Egyptian businessman Ahmed El Sewedy, has announced that it will sign a final agreement to obtain credit facilities worth EGP2 billion ($102.5 million) from seven banks as part of its expansion plans.

El Sewedy Electric announced that the signing of the EGP2 billion ($102.5 million) credit facility will take place within days, in accordance with the existing agreement with the seven banks it is looking to tap for debt funding.

The announcement follows the receipt of a $150-million loan from the International Finance Corporation, a sister organization of the World Bank and a member of the World Bank Group.

The $150-million loan facility will help the company expand and modernize its manufacturing operations. Presently, the company is working to expand access to renewable energy in several African countries.

The El Sewedy family founded El Sewedy Electric, an Egyptian electrical corporation, in 1938. At the time of writing, the family, represented by Sadek, Ahmed, and Mohammed El Sewedy, owned 68 percent of the corporation, a stake worth more than $450 million.

El Sewedy Electric, as one of the leading players in the electrical equipment manufacturing industry, has played an important role in the development of electrical projects throughout the Middle East and North Africa.

It recently signed a new contract worth EGP418 million ($21.5 million) with Egyptian International Pharmaceutical Industries (EIPICO).

The multimillion-dollar contract for EIPICO Factory 3 construction was signed through Rowad Modern Engineering, an Elsewedy Electric subsidiary, and will be completed on a turnkey basis over a 13-month period beginning with the signing date.

Its involvement in a number of development projects in the Middle East and North Africa has had a significant impact on the company’s financial success in recent years, as it continues to reap the benefits of a strong award pipeline and pricing strategies that are sensitive to macroeconomic inflation pressures.

As a result, revenue rose by 51 percent in the first quarter of 2022, from EGP12.3 billion ($661 million) to EGP18.57 billion ($998 million), thanks to a 64-percent increase in turnkey project revenue and a 47.5-percent increase in wire and cable sales.