SOURCE: Orascom Construction Industries

October 26, 2005 07:16 ET

Orascom Construction Industries Invests in Ammonia Plant

Cairo -- (MARKET WIRE) -- October 26, 2005 --

                                                             NEWS RELEASE


OCI to Invest in a US$ 540 million Ammonia Plant in Egypt

EBIC signs agreement for US$ 350 million in project debt finance including a US EX-IM bank guarantee for US$ 225 million for the construction of a new export-focused ammonia plant in Egypt

Cairo, Egypt - 26 October 2005: Orascom Construction Industries (OCI) announced that it is investing in a 30% stake in Egypt Basic Industries Corporation (EBIC) which is about to construct a 2,000 metric ton per day greenfield ammonia plant, the largest of its kind in Egypt, with a total investment cost of US$ 540 million. OCI's share in the equity of the project amounts to US$ 57 million which makes it the largest single shareholder. Other project sponsors include PSK Holdings (project promoter), Amiral Group, and the Egyptian General Petroleum Company, the state-owned oil and gas company. Kellog Brown & Root will act as the Engineering, Procurement & Construction (EPC) contractor for the greenfield plant and OCI will be the lead subcontractor.

The plant will be constructed on a surface area of 260,000 square meters to be located in the industrial park that is managed and operated by OCI's majority owned subsidiary Suez Industrial Development Company (SIDC) in Ain Sokhna. In addition, a pipeline connecting the plant to storage tanks located in the nearby Sokhna Port will be built to facilitate export operations.

EBIC has just signed agreements for US$ 350 million in long-term project finance debt on a non-recourse basis of which US$ 225 million will be an export-credit facility guaranteed by the Export-Import Bank of the United States (EX-IM bank). This is the first industrial project finance transaction for US EX-IM bank in Egypt. These International Loan facilities have been signed with 5 mandated lead arrangers (MLAs) including BNP Paribas, HSBC, Natexis Banques Populaires, SG and WestLB on a club deal transaction structure.

A take-or-pay agreement for 100% of the new plant's output has been secured with New-York based Transammonia, a leading specialized international trader. The plant will use natural gas as its primary fuel source and has already signed a 25-year Gas Supply Agreement with EGPC. OCI Chief Executive Officer, Nassef Sawiris commented "The EBIC project should generate US$ 200-300 million in export revenue depending on prevailing market prices." He also added "OCI continues to seek new investments that generate sustainable financial returns and steady cash flows. We are currently appraising several new investment opportunities in gas-derivative industries. We intend to actively increase the Construction Group's involvement in projects where OCI is an equity investor."


CONTACT: Hassan H. Badrawi
Investor Relations Director
Tel: +202 461 1039/1036

Orascom Construction Industries

Orascom Construction Industries (OCI) is a leading cement producer and construction contractor active in emerging markets. As a cement producer, we own and operate cement plants in Egypt and Algeria which have a combined annual production capacity of 13.5 million tons. Our new investments in Pakistan, northern Iraq, Nigeria, Algeria, the United Arab Emirates and Spain will increase our annual cement production capacity to around 28 million tons by 2007. As a contractor, we provide engineering, procurement and construction services on industrial, commercial and infrastructure projects for private and public customers principally in the Middle East, Africa and Central Asia.

For additional information on OCI:

Orascom Construction Industries (OCI)
Nile City Towers - South Tower
2005A Corniche El Nil, Cairo, Egypt
Tel: +202 461 1111, Fax: +202 461 9400,
OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD LI

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