Africa's biggest project financing has closed after six years and has
showcased a never-seen-before capital structure. The Mostorod refinery
delivered an engineering, procurement and construction (EPC) contract
robust enough to avoid the need for completion guarantees.
Mostorod went forward with no completion support because Egyptian
General Petroleum Corporation and Egypt-listed private equity firm
Citadel Capital, the project sponsors, were unable to guarantee capital.
The $3.7 billion Egyptian Refining Company (ERC) financing is for the
development of the Mostorod hydrocracking refinery near Cairo. It
included $1.14 billion of equity, $2.35 billion of senior debt and $225
million subordinate debt. The multi-source financing has shown that it
is possible to close large and complex deals in Egypt's politically
"For the ERC project to reach financial close in the uncertain
political environment which exists in Egypt is a testament to the basic
strength of the project and its...