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Egyptian Refining Company, a subsidiary of Qalaa Holdings, a leading investment holding founded by Egyptian businessman Ahmed Heikal, has completed the repayment of $417 million to its lenders, a step that sharply cuts the refinery’s senior debt and brings one of Egypt’s largest energy projects closer to financial stability.
Debt pared, dividends possible by 2026
The payment, made on Dec. 19, reduced ERC’s senior debt to about $63 million from more than $2.35 billion at its peak, according to company disclosures. The remaining balance is due in March 2026, positioning the company for a near-term exit from senior debt obligations that once weighed heavily on its balance sheet.
While senior borrowings are nearing full repayment, ERC still carries mezzanine debt of roughly $773 million. That tranche is scheduled to be settled in installments through 2030. Once the senior facilities are fully cleared and shareholders approve the necessary resolutions at a general assembly meeting, ERC will be eligible to begin dividend distributions for the first time since the refinery started operating.
Egypt fuel demand supports ERC
The progress comes as ERC continues to run at scale in Egypt’s fuel market, where demand has remained steady, supported by government-backed supply agreements and consistent domestic consumption. The refinery was built to meet local needs and reduce Egypt’s reliance on imported petroleum products a goal that has taken on greater importance amid pressure on foreign currency reserves.
ERC operates a $4.3 billion greenfield refinery in the Greater Cairo area, producing about 4.7 million metric tons of refined products annually. Output includes more than 2.2 million tons of Euro V diesel, alongside liquefied petroleum gas, naphtha, reformate, jet fuel, fuel oil, petroleum coke and sulfur. The facility was designed to meet stricter fuel standards while supplying the domestic market.
Under a long-term supply arrangement, the Egyptian General Petroleum Corp. provides ERC with about 3.5 million tons of atmospheric residue each year, sourced from roughly 5.2 million tons of mostly local crude oil. That agreement underpins the refinery’s operations and offers predictable feedstock volumes.
Ahmed Heikal’s long-term investment build
ERC sits within Qalaa Holdings, the Cairo-based investment firm founded in 2004 by Ahmed Heikal and Hisham El-Khazindar. Qalaa reported largely stable revenue of 37.2 billion Egyptian pounds ($783.8 million) in the first quarter of 2025. The firm focuses on energy and infrastructure assets across Egypt, East Africa and North Africa, operating in 15 countries and employing about 17,500 people.
Under Heikal, Qalaa expanded from a small private equity manager with EGP 2 million ($42,100) in initial capital into an investment holding company with paid-in capital of EGP 9.1 billion ($191.7 million). Its portfolio has included platform businesses such as Raya Holding, one of Egypt’s largest IT groups, and Genco, the country’s biggest natural gas distributor.
