Egyptian Refining Company Adds to List of Awards, Receives Further Global Recognition for Financial Close on US$ 3.7 bn Project

Egyptian Refining Company, one of the largest oil and gas projects in Egypt and the region, stands as an example of public-private cooperation and underscores the fundamental attractiveness of the Egyptian market to long-term international investors

Citadel Capital’s Egyptian Refining Company (ERC), a US$ 3.7 billion greenfield petroleum refining upgrade project in the Greater Cairo Area, received the Infrastructure Journal “Oil & Gas Deal of the Year” and overall “Deal of the Year” awards in April 2013. The awards underscore the importance of this vital national project and its ability to win substantial international backing despite the economic challenges Egypt presently faces.

ERC stands as among the largest-ever project finance transactions in Africa and is one of Egypt’s largest inward investments. The financial close of ERC confirms to international investors and the global community that Egypt is open for business.

The project has received numerous global awards this year prior to the Infrastructure Journal recognition, including Reuters-affiliated Project Finance International’s “Middle East and Africa Petrochemical Deal of the Year,” Trade Finance Magazine’s “Deal of the Year,” and the International Financial Law Review‘s “Project Finance Deal of the Year” for legal advisory on the transaction, bringing its total number of wins for the year to 6 awards thus far. ERC has also been shortlisted for the upcoming 2013 Ai African Infrastructure Investment awards.

ERC is investing US$ 3.7 billion to build a state-of-the-art refinery that will reduce Egypt’s present-day diesel imports by more than half, eliminate approximately 93,000 tons of sulfur emissions annually, and produce over 4.2 million tons of refined products and high-quality oil derivatives per year including 3 million tons of jet fuel and Euro V diesel (the cleanest-burning diesel fuel in the world). Additionally ERC will produce 700,000 tons of octane-rich petrol fuel that represents more than 70% of Egypt’s current imported volume. ERC will also lead to an estimated US$ 300 million in annual savings and revenues to state coffers, as its contractual agreement states that the Egyptian General Petroleum Corporation (EGPC) will purchase all of ERC’s production of high-quality fuel products.

Developed by Citadel Capital (CCAP.CA on the Egyptian Exchange), the leading investment company in Africa and the Middle East with US$ 9.5 billion in investments under control, ERC is a public-private partnership with the private sector investing alongside the government to address Egypt’s growing demand for octane-rich products, namely jet fuel and diesel, that are currently imported in rising quantities. The project aims to address the critical need for national infrastructure development and will create 700 permanent jobs and an additional 10,000 jobs during the construction phase.

“ERC is a key component of Egypt’s energy security and we look forward to seeing the project through to its completion. It is an honor to win recognition from IJ for this landmark project, which would have not been possible without the help of our dedicated in-house team and advisors, the support of our equity and debt partners and the cooperation of the government and EGPC as well as the people of Mostorod where the refinery will be located,” said Ahmed Heikal, Founder and Chairman of Citadel Capital.

ERC faced substantial international competition for the Infrastructure Journal Awards, with projects backed by major global industry players and financiers, including some 28 contenders that included major oil & gas and infrastructure projects from across the globe. The awards are the latest in a string of international acknowledgments following the financial close of the landmark deal.

“The ERC project weathered many challenges such as the 2008-2009 global financial crisis and the reduced investment appetite in Egypt post January 25 Revolution. The financial close was only made possible by the strong economic rationale of the project and its benefits to Egypt. ERC is not only a transformative import substitution project, but it will also help improve the air quality in Egypt,” said Heikal.

The equity component of the transaction, which reached final close on 14 June 2012 at a total of US$ 1.1 billion, was the largest raising of equity in Egypt since 2007 and the largest in the MENA region in 2012. In addition to Citadel Capital, investors in the transaction include EGPC, Qatar Petroleum International (QPI), investors from Egypt and the Gulf Cooperation Council countries, and global institutions including the International Finance Corporation, the Dutch development bank FMO, Germany’s DEG, and the InfraMed Fund.

ERC is also supported by a US$ 2.6 billion debt package announced in August 2010 which was arranged by ERC’s financial advisor Société Générale and supported by ERC’s legal advisors, Shearman & Sterling and Arab Legal Consultants.

The package includes US$ 2.35 billion of senior debt and US$ 225 million of subordinated debt. With the Bank of Tokyo-Mitsubishi serving as the global coordinator, institutions participating in the senior debt package include the Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), the Export-Import Bank of Korea (KEXIM), the European Investment Bank (EIB) and the African Development Bank (AfDB). Mitsui & Co., which is part of the contractor consortium building the refinery, and the African Development Bank are providing the subordinated debt financing.

Energy is one of five core industries in which Citadel Capital invests across its 15-country footprint, alongside transportation and logistics, agriculture and consumer foods, mining, and cement and construction.


Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading investment company in Africa and Middle East. Citadel Capital controls investments of US$ 9.5 billion and focuses on 5 core industries: Energy, Transportation & Logistics, Agriculture & Consumer Foods, Mining, and Cement & Construction. For more information, please visit

The Egyptian Refining Company is building a state-of-the-art US$ 3.7 billion greenfield oil refinery in the Greater Cairo Area, which will produce over 4.2 million tons of refined products per annum, including over 3 million tons of jet fuel and EURO V diesel, the cleanest fuel of its type in the world. ERC’s production will be sold to the Egyptian General Petroleum Corporation (EGPC) under a 25-year offtake agreement at international prices.

For more information, please contact: 

Ms. Ghada Hammouda
Head of Corporate Communications & CMO
Citadel Capital (S.A.E.) (click to reveal this email)

Tel: +20 2 2791-4482 
Fax: +20 22 791-4448
Mobile: +20 106 662-0002