Banking and Finance

Our banking and finance practice’s areas of activity include:

• Asset Finance
• Banking Litigation
• Project Finance
• Financial Structuring
• Fund Finance
• Loans
• Leveraged Finance
• Real Estate Finance
• Restructuring and Insolvency
• Trade Finance
• Bond Issues
• Convertible Bonds
• Equity Capital Transactions
• Alternative and Structured Financing

Shahid Law Firm’s major representations in the banking and finance industry include:

• Advising FMO (the Dutch development bank) on the first three-year, EGP-denominated loan facility entered into with the First Microfinance Company Egypt (FMFC) worth the equivalent of USD 700,000 used to extend loans to female and young entrepreneurs.
• Advising Voltalia, an international company in the renewable energy sector, on the implementation of the local security related to their 25 MW solar PV power project facility under the Egyptian feed-in tariff program.
• Advising Scatec Solar in the landmark structuring deal of its six portfolio project companies developing a total of 300MW of solar PV power under the Egyptian Feed-In Tariff programme including all local aspects of financing the projects and putting in place the onshore securities. The transaction has won the Islamic Finance News (IFN) Egypt Deal of the Year award, the EMEA Finance Best Renewable Energy Deal in Africa, and Best Solar Deal in EMEA in 2017.
• Advising four separate developers (including Scatec Solar, which was the second-lowest bidder) on the tender for the development of a 200MW solar PV power plant in Kom Ombo in the South of Egypt. The Firm advised on the regulatory framework, local review of the project documents, as well as assisted with respect to the bids’ preparation and submission. Additionally, the Firm advised Scatec Solar on its agreement with Banque Misr for the financing of the USD 4 million bid bond for the project, which remains in place until the execution of the Power Purchase Agreement of the project with the winning bidder.
• Advising UKEF and KFW in multi-million-dollar aircraft and engine finance transactions across several jurisdictions
• Acting as Borrower’s local counsel to Banque Misr SAE in its largest-ever syndication to date worth approximately USD 1.2 Billion, involving 22 banks from 11 countries, including banks from the USA, Europe, Middle East, and Asia. The loan will be used towards financing development projects.
• Advising a group of leading Spanish Banks in the cancellation and registration of a Euro 20 million pledge of shares owned in Arabian Cement Company, one of the leading cement companies operating in Egypt.
• Advising China Development Bank on the financing of the largest project with Egypt’s Suez Special Economic Zone, a zone created specifically to encourage investment under a special law.
• Advising China Development Bank on multiple loans and financial transactions, including a USD 50 million credit facility to an Egyptian company operating under the law on special economic zones; and also, in relation to extending a US$ 100 million credit facility to Afreximbank.
• Representing the Egyptian Ministry of Finance in one of its first bond offerings in foreign stock exchanges, as well as in its negotiations with an international investment bank for derivatives arrangements under the ISDA Master Agreement.
• Advising a major regional pharmaceutical company in relation to an excess of EGP 200 million in financing obtained from a syndication of banks for the expansion projects it undertook.
• Advising a regional real estate developer on a transaction and representing it in negotiations with the Arab African International Bank regarding the financing of a project relating to the construction of a shopping mall, and commercial and administrative buildings in the citadel area of Cairo, Egypt.
• Advising the world-leading electricity utility EDF Renouvelables on the acquisition of a non-controlling stake in and equity financing of the young Egyptian market-leader Karm Solar which is the pioneer of the independent power producer field in Egypt. The target owns, builds and operates renewable energy facilities and generates and distributes electricity produced from renewable sources to commercial and industrial customers and real estate developers.
• Advising the National Bank of Greece (NBG) on accepting commercial mortgages as guarantee against financing and financial facilities granted.
• Advising Hybrid Capital Inc. on the equity financing of a dry bulk port in Adabiya (Egypt), and structuring the acquisition transaction, including the full legal due diligence exercise and local law review of the facility agreement. We are also advising on the potential assignment and scope amendment of the concession agreement. We are further advising on the potential restructuring of the financing on a project financing basis.
• Advising Arab Banking Corporation on the USD 120 Million financing for EgyptAir. The transaction involves procuring the required securities, reviewing and advising on the facility agreement and related documents from and Egyptian law standpoint, assignment of receivables, and mortgaging aircraft.
• Advising AFD in relation to the financing granted to the Holding Company for Water and Wastewater for the improvement of the public infrastructure of several wastewater plants across Egypt; and in relation to the credit facility extended to the National Bank of Egypt (NBE) for the purpose of supporting the development of Egyptian small and medium enterprises.
• Advising Globeleq on all aspects of the acquisition, including obtaining the consents of the Egyptian authorities and project lenders, assisting with the legal due diligence on the two project companies, review of the financing documents and project documents, etc. until the drafting and review of the transaction documents and closing.
• Advising Cementos La Unión S.A. and Áridos Játiva S.L. on the development and financing of their Arabian Cement subsidiary in Egypt.
• Advising OiLibya on issues related to the financing of its oil blending facility owned jointly with Total for the production of a wide range of top-grade lubricants for manufacturing, agricultural and construction machinery as well as vehicles.
• Supporting El Nasr Automotive Manufacturing Company (NASCO) in the extensive negotiations with Dongfeng’s affiliates, leading to the signing of two milestone collaboration agreements. The framework agreement sets out the guiding principles for the bilateral partnership between the two parties, while the second agreement aims at renovating one of NASCO’s affiliated factories in cooperation with one of Dongfeng’s subsidiaries. Further agreements for the project development shall be executed throughout 2021.
• Acting for JPMORGAN CHASE & Co., UK Export Finance and other creditors (ECAs) in connection with the re-financing acquisition by EgyptAir of Two (2) Rolls Royce Trent Aircraft Engines. Advice included handling all aspects relating to the transaction and ensuring compliance with Egyptian law.
• Advising JPMorgan Chase Bank, UK Export Finance, and other creditors (ECAs) on a re-financing acquisition by EgyptAir of [Three Airbus A320 NEO Aircrafts] as part of its renewal of its aircraft arsenal. Our firm is handling providing advice to the ECAs from an Egyptian law standpoint, and working with borrowers, Egyptair and the Egyptian Civil Aviation Authority towards closing the transaction.
• Advising UK Export Finance; KfW IPEX-Bank GmbH; and Euler Hermes Aktiengesellschaft (ECAs) on a re-financing acquisition by EgyptAir of [Three Airbus A320 NEO Aircraft] as part of its renewal of its aircraft arsenal. Our firm handled providing advice to the ECAs from an Egyptian law standpoint, and working with borrowers, EgyptAir and the Egyptian Civil Aviation Authority towards closing the transaction.

Moreover, our team is also one of the few teams that handle aircraft financing and employment work in Egypt, acting both for borrowers and lenders. Some examples of our work include:

• Advised Air Liquide on the various aspects of employees’ legal entitlement to a share in the profits of Egyptian corporations, as well as the current applicable mechanism for distributing the employees’ share of the profits currently adopted by Air Liquide five legal entities in Egypt.
• Representing Turkish Airlines on day-to-day employment matters including drafting of employment contracts, executing staff members’ termination, and handling social insurance matters as well as the exceptional statutory measures to be undertaken by employers as a result of COVID-19 and the mechanism of applying these measures on their employees.
• Advising Air Leisure, one of Egypt’s largest airlines in the negotiation of the finance of aircraft from one of the world’s largest aircraft leasing companies.
• Representing Arab Banking Corporation in a multi-million-dollar financing transaction involving EgyptAir Cargo for the purpose of purchasing aircraft.
• Representing the International Air Transport Association (“IATA”) in a multi- million-dollar cross border insurance claim. On 23 August 2022, the Financial Regulatory Authority’s Dispute Settlement Committee ruled in favor of IATA confirming its entitlement to more than EGP 115 million in insurance proceeds.
• Representing UK Export Finance and several creditors including JP Morgan Chase Bank in aircraft and engine financing transactions in Egypt, as part of EgyptAir’s plan to renew its aircraft arsenal, including securing what to the best of our knowledge is the first engine mortgage in Egypt.