The National Bank of Egypt (NBE) and Banque Misr have arranged an EGP 8bn long-term syndicated financing facility for Palm for Investment and Real Estate Development, a subsidiary of Palm Hills Developments, to finance part of the investment cost of the Palm Hills New Cairo project.
The financing will support the completion of the project’s current and future development phases and accelerate construction work in line with its continued expansion and growing demand.
NBE acted as initial mandated lead arranger, financing marketer, security agent, debt service reserve account bank and documentation bank, while Banque Misr acted as initial mandated lead arranger, financing marketer, facility agent, account bank and escrow account bank.
The financing is equally divided between the two banks, with each contributing EGP 4bn.
The agreement was signed in the presence of Soha El-Turky, Deputy CEO of NBE; Hesham Okasha, CEO of Banque Misr; Sherif Riad, Executive Head of Corporate Banking and Syndicated Loans at NBE; Yasseen Mansour, Chairperson and CEO of Palm Hills Group; Amr El-Demerdash, Head of Corporate Credit and Syndicated Loans at Banque Misr; Hazem Badran, Co-CEO and Managing Director of Palm Hills; and Ali Thabet, Chief Financial Officer of Palm Hills, alongside senior officials from the two banks and the company.
The financing will cover part of the investment cost of Palm Hills New Cairo, which spans approximately 500 feddans and is one of Palm Hills Developments’ flagship projects in East Cairo.
The integrated development includes a range of residential properties, including villas and apartment buildings, as well as service areas, commercial and administrative units, and a sports and social club.
El-Turky said NBE places particular importance on supporting real estate development companies and developers amid the challenges facing the property market.
She said the financing agreement builds on the bank’s existing support for real estate projects and is consistent with its strategy of financing sectors that have a broad impact on economic activity.
El-Turky highlighted the real estate sector’s links with a wide range of industries, intermediary activities and employment opportunities. She also praised the teams at both banks for completing the necessary studies and successfully arranging the financing.
She added that NBE provides various forms of financing to the property sector, ranging from mortgages for individual homebuyers to facilities tailored to the needs of real estate developers.
Okasha said Banque Misr’s participation in arranging the facility reflects its commitment to supporting major real estate and urban development projects, given the sector’s strategic importance to the Egyptian economy and its role in stimulating economic activity and creating jobs.
He added that the bank seeks to leverage its banking expertise and capabilities to provide integrated financing solutions that meet companies’ needs, while strengthening cooperation with other financial institutions and major corporations.
Okasha said the transaction was also consistent with Banque Misr’s strategy of supporting large-scale projects and strengthening the banking sector’s role in financing investments with economic and developmental impact.
Mansour said the financing reflects the banking sector’s confidence in Palm Hills Group’s financial position and its ability to execute major urban development projects.
He added that the facility would support the future expansion of Palm Hills New Cairo while accelerating construction at the development to meet growing demand.
According to Mansour, the financing will help the company deliver units to customers ahead of schedule while completing the project’s various components and services to high quality standards.
He said the facility also demonstrates the confidence of major financial institutions in Palm Hills Developments, the quality of its projects and assets, and its ability to develop projects that generate sustainable value for customers.
Mansour added that cooperation with NBE and Banque Misr demonstrates the importance of partnerships between the banking and real estate sectors in financing major developments and supporting urban expansion.
Palm Hills will continue to focus on accelerating execution across its projects and improving the efficiency of its investments to support sustainable growth and meet its commitments to customers, he said.
