WHAT: Learning session to share key lessons from the African Development Bank Group's financing of the Egyptian Refining Company (ERC) Project
WHO: African Development Bank Group's Special Operations Unit (SNOU), and PwC
WHEN: Thursday, 2nd October 2025; 10:00am to 12:00 noon (Abidjan time).
WHERE: In-person (CCIA) and Virtual (Register here)
The Egyptian Refining Company (ERC), a public-private partnership in Egypt, is the beneficiary of a direct senior loan of a $200 million and a subordinated convertible loan of $25 million from the African Development Bank Group. The project has faced a series of challenges over the last 15 years, leading to a long-term debt restructuring process which was successfully concluded in December 2024.
The Special Operations Unit (SNOU), a dedicated specialist and independent corporate recovery unit within the African Development Bank Group, is organizing this session, consisting of presentations and interactive discussions, to reflect on the key insights, challenges encountered, and lessons from its involvement in the financing and development of the ERC, to guide future projects.
Background:
The ERC is a $4.3 billion project developed adjacent to the Cairo Oil Refinery Company (CORC), and intended to support Egypt's import substitution ambitions, given that the country is a net importer of crude and diesel.
To support private sector development, which is at the center of the Egypt's development strategy, the African Development Bank Group provided a direct senior loan of US$ 200m and a subordinated convertible loan of US$ 25 million to ERC. The loans were fully disbursed in July 2012.
The project faced multiple setbacks, including the Arab Spring (2011-2012), the COVID-19 pandemic, and more recently the Russia-Ukraine and Israel-Palestine wars. These challenges have caused the project to undergo three restructurings (2011, 2018, 2019) followed by an informal standstill in 2020 to stabilize its financial position.
In response to a request by ERC, the Bank Group Board of Directors in September 2024 approved a restructuring of the senior loan and the subordinated convertible loan. In December 2024, the ERC concluded the debt restructuring process.
The Lessons Learnt session will provide practical insights into navigating the complex interplay between lenders, borrowers, and government stakeholders in a complex project restructuring. It will also highlight the strategies used to align diverse interests, unpack negotiation dynamics that proved decisive to closing the deal, and draw lessons to strengthen future Bank operations.
Speakers:
- Mamadou Sakho, Head of Unit, SNOU, African Development Bank Group
- Sam Tao, Deals Partner within the Financial Advisory team in London at PwC, with experience advising ERC's lenders through previous restructurings
- Sam McMahon: Restructuring expert with over 16 years of experience across the UK, Europe and the Middle East.
- Erin Clark, Manager in PwC's Lender Advisory team
- Moderator: Innocent Bulindi, Principal Investment Officer, SNOU
