Cairo - Mubasher: EFG Hermes, an EFG Holding company was appointed as the financial advisor to the Metallurgical Industries Holding Company (MIH) and Egypt Aluminum on its landmark term sheet signed with Trafigura, according to a press release.
The two companies signed an agreement to establish a new project company (NewCo) to develop, own, and operate a new primary aluminium smelter at the Nag Hammadi complex, with an investment cost of $750 to $900 million.
EFG Hermes is advising on both the equity and debt raising processes for the expansion project, which represents one of the largest capital investments in the company’s history.
The deal spans the construction of a new primary aluminium smelter with an annual capacity of approximately 300,000 tons, alongside a 150,000-ton-per-annum anode plant.
Once completed, the project will nearly double Egyptalum’s current output, increasing export revenues and reinforcing Egypt’s standing as a major global aluminium producer.
NewCo will be majority-owned by MIH and Egypt Aluminum, serving as the vehicle for developing, owning, and operating the new production facility.
On its part, Trafigura will participate as a minority equity investor, a debt provider, and a long-term offtake and feedstock supply partner.
Co-Head of Investment Banking at EFG Hermes, Maged El-Ayouti, commented: “This partnership underscores EFG Hermes’ ability to structure complex, high-impact financing frameworks that enable national champions to attract international capital and execute transformative growth strategies in sectors that drive sustainable economic development.”
“This is a critical milestone in the journey toward doubling Egyptalum's production capacity and reinforcing Egypt’s standing on the global stage. We remain fully committed to supporting all parties through to the official closing and successful execution of the transaction,” El-Ayouti added.
EFG Hermes recently closed advisory on EGP 1.91 billion securitized bond issuance for Bedaya Mortgage Finance.
