Egypt's Middle East Oil Refinery Company (Midor) has entered into a first loan deal with three banks for $1.2 billion, Reuters reports.

According to Midor’s Chairman, Mohamed Abdel Aziz, the loan signifies approximately 80 % of the cost of the company’s $1.4 billion Alexandria refinery lab extension while the remaining will be self-financed.

The loan deal was signed by Abdel Aziz and the heads of a banking group which includes French banks Credit Agricole, BNP Paribas and Italy's CDP.

The Midor project is aimed at boosting the company's refining capacity to 160,000 bpd from 100,000 bpd as Egypt has fought with mounting energy bills initiated by high subsidies provided on fuel.

Anita Fatunji