The Commercial International Bank—Egypt (CIB), acting as the lead arranger and financier, has successfully arranged a syndicated loan worth EGP 9bn for Madinet Masr Housing and Development Company, a key player in Egypt’s real estate sector. This loan, which spans seven-and-a-half years, is designed to partially finance new phases of Madinet Masr’s flagship developments, Taj City and Sarai.
The consortium leading this deal also includes First Abu Dhabi Bank – Egypt, Abu Dhabi Commercial Bank – Egypt, Al Baraka Bank – Egypt, Export Development Bank of Egypt (EBank), Housing and Development Bank (HDB), and Industrial Development Bank (IDB), with Sari El Din & Partners serving as the lenders’ advisor. CIB holds the largest share of the loan, contributing EGP 4.5bn, while other banks provide various portions, with First Abu Dhabi Bank – Egypt contributing EGP 1.35bn as the security agent.
The loan’s main purpose is to cover part of the investment costs for several new phases within the company’s projects, Taj City and Sarai.
This joint loan arrangement supports the real estate development sector in Egypt, which has proven to be the most important sector in the Egyptian market, given that it provides many direct job opportunities and is the most attractive investment sector for capital from local and foreign investors, in light of its contribution to bridging the gap between supply and demand for residential units.
“This great achievement reflects the confidence that a banking consortium of seven leading banks operating in Egypt, led by CIB, has in Madinet Masr’s strategic vision and operational capabilities. Through this loan, we aim to develop our land portfolio, which drives us towards our ambitious goals of developing sustainable communities that meet the needs of future generations,” said Abdullah Salam, CEO and Managing Director of Madinet Masr.
For his part, Amr El-Ganainy, Deputy CEO and Executive Board Member of CIB stressed his bank’s pride in strengthening the long-term relationship with Madinet Masr by providing the necessary support to develop its most prominent real estate projects in East Cairo. El-Ganainy also emphasized the bank’s confidence in the company’s ability to write a new chapter in its success story. He added that the real estate sector has become a safety valve that ensures stability for about 30 million Egyptians, provides at least 5 million jobs, and supports the GDP by about 20% – expected to increase to 22% in 2025.
Mohamed Abbas Fayed, CEO and Managing Director of First Abu Dhabi Bank Egypt, said: “First Abu Dhabi Bank Egypt is proud of its role in supporting Madinet Masr by participating as the second largest bank with a share of EGP 1.35bn, and acting as the first general arranger and collateral agent. This move reflects the bank’s firm commitment to supporting financing activity in Egypt, which drives economic growth, creates jobs, and ensures a boom in the real estate market.”
From his side, Ehab El-Swerky, Managing Director and CEO of Abu Dhabi Commercial Bank – Egypt, said: “We are proud to participate in this syndicated loan for Madinet Masr. It confirms the great support and assistance provided by the bank to the real estate development sector and the national economy.”
Hazem Hegazy, CEO and Vice Chairperson of Al Baraka Bank, stated that his bank is pleased to be part of this agreement to support the two leading projects of Taj City and Sarai. “Our participation as a general arranger with a share of EGP 700m reflects our ongoing commitment to implementing the bank’s strategy, which aims to enhance our financing portfolio by 2025, through effective partnerships with banks and financial institutions,” he added.
Ahmed Galal, Chairperson of EBank, said: “Our participation in this financing is an extension of our bank’s strategy towards expanding financing syndicated loans that support major companies and institutions, which helps make the state’s economic goals tangible and achieves maximum benefit and advantage for all economic sectors.”
Hassan Ghanem, CEO and Managing Director of HDB stressed the importance of supporting the real estate sector as a main pillar of economic growth and comprehensive development. He explained that the bank is keen to continue supporting and assisting major projects that help foster social and economic stability, based on its leading role in the field of urban development for more than 45 years.
Hussein Refaei, CEO and Managing Director of IDB, said: “Signing this joint loan reflects the commitment of IDB to support major projects. This plays a major role in supporting the development of modern urban communities that meet the needs of the local market and support sustainable development. The “Taj City” and “Sarai” projects represent distinguished models of urban development in Egypt.”
