(2014-10-15) Rubex signs AAIB as financial advisor; seeks LE50 m funding
Egypt's Rubex Plastics (RUBX) signed Arab African International Bank (AAIB) as a financial advisor to provide LE50 million through strategic investors that will enter the capital structure by a rights issuance at the stock's nominal value, said Chairman Magdy El-Taher. The firm announced yesterday that it approved the offer by the bank and the postponement of buying land plots abroad. El-Taher said that the board's approval to sign AAIB targeted providing around 40% of the investment cost for the new plant worth LE120 million, financial newspaper AlMal reported. He added that the recent capital increase worth LE14 million will be used to fund the complex. The chairman revealed that the rest of cost will be provided by bank loans, and that the firm is negotiating with Audi Bank to get LE40 million. He added that the risk management is looking into the loan and will finish by end of next week. Rubex Plastics finished the architectural drawings for the industrial complex, which will be built on 50,000 meters at Borg Al-Arab in Alexandria, El Taher said. He added that the construction will begin after receiving the land plot by 3 month at maximum and that the firm will finish building in about a year. Regarding the equipment and tools, El-Taher said that the company is looking into many offers to supply the equipment for the glass formation plant and offers to supply the Italian line and the plastics line.