A banking alliance consisting of Banque Misr and the National Bank of Egypt (NBE) signed a long-term joint financing contract for Palm Investment and Real Estate Development Company, a subsidiary of Palm Hills Developments with a value of EGP 2.5bn.
Banque Misr will act as the first main arranger, finance marketer, and financing agent, while NBE will be the first main arranger, finance marketer, guarantee agent, and debt service account bank.
The signing ceremony was attended by Yehia Aboul Fotouh, Vice Chairperson of NBE; Akef El-Maghraby, Vice Chairperson of Banque Misr; Tarek El Tantawy and Hazem Badran, CEOs and board members of Palm Hills Developments, and the work teams from the two banks and the company.
Aboul Fotouh said that NBE attaches special importance to supporting real estate development companies, and is keen on supporting real estate developers. He added that this contract is an extension of the real estate sector projects supported by the Bank, which are in line with its strategy in supporting economic sectors whose positive results are seen in the economy, in addition to intermediary industries, which the Bank is keen to finance, to provide more job opportunities.
For his part, Akef El-Maghraby stressed that Banque Misr’s participation in this financing is a continuation of its role in supporting the Egyptian economy, especially that the real estate sector is one of the main sectors affecting the Egyptian economy, contributing to the implementation of sustainable development plans through establishing integrated urban communities in the new cities.
Tarek Tantawy, Co-CEO and Managing Director of the company, said that this new financing will reinforce the financial position of the project and support the company’s plan to accelerate the pace of construction and continue the early delivery of residential units.
Sherif Reyad, CEO of Corporate Credit and Syndications at NBE, added that NBE’s percentage of the financing is 50%, while Banque Misr’s is 50%, with a period of up to 7.5 years, to finance part of the total investment cost of establishing the integrated urban project “Palm Hills – New Cairo” on a plot of land with an area of about 500 feddan in a very distinct location in New Cairo.
Mohamed Khairat, head of the corporate credit and syndicated loans sector at Banque Misr, stressed the bank’s keenness on providing the necessary funds for Palm Investment and Real Estate Development, as a contribution from the bank to help push the Egyptian real estate market forward, as it is one of the most important sectors that easily leaves a positive impact on the Egyptian economy.
