The Housing and Development Bank (HDB) has joined a banking alliance to provide a syndicated loan of EGP 650 million to finance the establishment of a pharmaceutical factory in the city of Borg El-Arab, Alexandria.

The alliance also includes the Export Development Bank of Egypt (EBE), the Egyptian Arab Land Bank (EALB), the Industrial Development Bank (IDB) and the Suez Canal Bank (SCB).

HDB Chairman and CEO Hassan Ghanem said the co-financing contract benefits Vetopharm International for Pharmaceuticals and Chemicals. The new pharmaceutical plant will include two production units, the first of which specializes in the production of all pharmaceutical drugs and medical preparations. The second is specialized in the production of biological drugs.

According to Ghanem, HDB’s share in the syndicated loan was EGP 120 million, while the total investment cost of the project is around EGP 1.1 billion. The term of the loan is seven years.

Ghanem pointed out that, as part of HDB’s expansion strategy for the coming period, the bank aims to expand business lending to encourage domestic investment and meet local financing needs. This is particularly aimed at the economic sectors which have the greatest impact on the growth of the Egyptian economy.

This corresponds to the state plan to increase the capacities of vital sectors and create new employment opportunities in various fields. Ghanem praised the efficient and fruitful cooperation between the participating banks, which reflects the strength and soundness of the Egyptian banking sector.