Banque Misr, Egypt's second-largest state lender, has invited banks to pitch for arranger roles on a potential dollar-denominated syndicated loan, three banking sources said on Thursday.
National Bank of Egypt, the biggest state-owned bank, is already in the process of arranging a $390 million, 37-month syndicated loan.
The Egyptian government returned to the international debt market this month after a five-year hiatus due to political and economic instability.
But Egyptian banks are lining up to raise more dollar funds to fill a gap that has revived a black market in Cairo and pushed up inflation, putting economic recovery at risk.
No one at Banque Misr was immediately available for comment. The sources said it was looking for a 3-year loan and had sought feedback from banks by the end of June.
The bank is close to finalising the group of banks that will arrange the loan and it intends to complete the deal this year, the sources said, asking not to be named.
The lender is expected to raise around $300 million, one of the sources said.
