HSBC and Credit Suisse are reportedly arranging a syndicated loan of up $700m for the Egyptian Electricity Holding Company (EEHC), Reuters reported on Wednesday.

According to the news agency’s sources, the loan, which may involve other banks, will be guaranteed by the Finance Ministry. It will have a grace period of five years, and is being syndicated to international and Gulf banks.

Earlier in March, the EEHC negotiated with five local banks to borrow $90m to finance the maintenance programmes of Upper Egypt Electricity Production Company (UEEPC).

The loan, signed by UEEPC with the local bank, stipulated repaying the loan over 11 years with a grace period of up to four years. According to the agreement, the loan includes tranches in Egyptian pounds, US dollars, and euros.

In 2017, the total balances of loans and long-term liabilities owed by the company and its subsidiaries amounted to EGP 200bn, including a loan to build the Beni Suef, New Administrative Captial, and Brulus power plants for €6bn; a bank loan from NBE at a value of EGP 37.4bn; and the Japan International Cooperation Agency (JICA) loan of $243m to finance power control centres.