The European Bank for Reconstruction and Development (EBRD) has rubber-stamped the loan of $25 million for Egypt-based United Metals Company (UMC). The funding is aimed at backing the company’s working capital needs amidst the COVID-19 pandemic.
The loan will enhance the Company’s financial resilience to withstand the potential negative implications of the COVID-19 pandemic through providing funding to source raw materials, EBRD said in a statement.
UMC, 99.8% owned by El Sewedy Electric, is an Egyptian joint stock company specialized in the production of copper rods, the main raw material used in the production of copper cables.
“Pandemic-related supply disruptions had contributed to soaring copper prices, including copper cathodes during the second half of 2020 and continuing into 2021,” EBRD also said.
As part of the loan agreement, El Sewedy Electric will partner with the EBRD to launch a first of its kind awareness campaign for promoting equal opportunities aimed at empowerment of women and people with disabilities in the manufacturing industries in Egypt.