Eastern Company nods to capital increase, credit facilities
Updated 3/5/2024 12:13:00 PM
Arab Finance: Eastern Company’s (EAST) ordinary and extraordinary general meetings (OGM and EGM) have approved using EGP 770 million from the retained earnings to raise the company’s issued capital, as per a statement.
Accordingly, the capital will be increased from EGP 2.23 billion to EGP 3 billion via distributing 0.345-for-1 bonus shares to senior shareholders.
Moreover, the EGM has approved increasing the authorized capital from EGP 3 billion to EGP 15 billion.
The OGM also agreed to the company’s board decisions on signing credit facilities worth a combined $400 million with Emirates NBD Egypt, Commercial International Bank (CIB), and other banks to open letters of credit for tobacco and raw materials importers.
Furthermore, the OGM endorsed the board’s decision to use credit facilities worth $200 million from Emirati banks. This amount will be used as guarantee letters in favor of Egyptian banks to open letters of credit for suppliers.
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