Financing Facility for Palm Hills New Cairo
The National Bank of Egypt (NBE) and Banque Misr have jointly established an EGP 8 billion long-term syndicated financing arrangement for Palm for Investment and Real Estate Development, a subsidiary of Palm Hills Developments. This financing aims to cover a portion of the investment expenses associated with the Palm Hills New Cairo project.
This financial support will facilitate both the ongoing and future phases of the project, enhancing construction efforts in response to rising demand and continual expansion.
NBE served as the initial mandated lead arranger, financing marketer, security agent, debt service reserve account bank, and documentation bank. Meanwhile, Banque Misr took on roles as an initial mandated lead arranger, financing marketer, facility agent, account bank, and escrow account bank.
The funding is split evenly between the two banks, with each bank providing EGP 4 billion.
The signing ceremony included notable attendees such as Soha El-Turky, NBE’s Deputy CEO; 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; along with other senior officials from both banks and Palm Hills.
The financing will address part of the investment costs for Palm Hills New Cairo, which covers around 500 feddans and stands out as one of Palm Hills Developments’ premier projects in East Cairo.
This development encompasses a variety of residential options, including villas and apartments, as well as areas designated for services, commerce, administration, and a sports and social club.
El-Turky emphasized the bank’s commitment to assisting real estate developers, particularly in light of the current obstacles in the property market. She noted that this financing agreement is a step forward in maintaining the bank’s support for real estate projects, aligning with its strategic focus on sectors that significantly influence economic activity.
She also pointed out the links between real estate and various industries, noting how it fosters intermediary activities and job opportunities. Additionally, she commended the teams from both banks for their efforts in conducting essential studies and securing the financing.
El-Turky mentioned that NBE offers a wide range of financial solutions for the property sector, from mortgages for individuals to customized facilities for developers.
Okasha remarked that Banque Misr’s involvement in this financing arrangement highlights its dedication to supporting substantial real estate and urban development initiatives, emphasizing the sector’s crucial role in the Egyptian economy and its capacity to drive economic growth and create jobs.
He noted that the bank aims to use its expertise to provide comprehensive financing solutions that cater to the needs of businesses while fostering collaboration with other financial institutions and major companies.
This transaction aligns with Banque Misr’s strategy to back large-scale projects and enhance the banking sector’s capacity to fund investments with significant economic and developmental implications.
Mansour commented that this financing reflects the banking sector’s trust in Palm Hills Group’s financial stability and its capability to manage major urban development projects. He believes this facility will aid in expediting the future growth of Palm Hills New Cairo to meet increasing demand.
Furthermore, he stated that the financing would allow the company to deliver units to clients ahead of schedule while ensuring the project meets high-quality standards across its various components and services.
Mansour also pointed out that this facility signifies the confidence leading financial institutions have in Palm Hills Developments, acknowledging the quality of its assets and its capacity to generate sustainable value through its projects.
He concluded by emphasizing that collaboration with NBE and Banque Misr underscores the vital partnerships between the banking and real estate sectors, which are essential for financing substantial developments and promoting urban growth.
Palm Hills intends to maintain its focus on enhancing execution across its projects and optimizing its investments to foster sustainable growth and fulfill its commitments to customers.
