A Palm Hills' subsidiary signs a EGP2.5bn loan with NBE and Banque Misr

A banking consortium consisting of Banque Misr and the National Bank of Egypt signed a long-term joint financing contract worth EGP 2.5 billion to the advantage of Palm Investment and Real Estate Development, a subsidiary of Palm Hills Development.

Banque Misr will act as the first main arranger, financing marketer, financing agent, account bank. The National Bank of Egypt will act as the first main arranger, financing marketer, guarantee agent, and debt service account bank.

The signing was attended by Akef Al-Maghrabi, Vice-Chairman of Banque Misr, Yehia Aboul Fotouh, Vice-Chairman of the National Bank of Egypt, Tarek El-Tantawy and Hazem Badran – CEOs and members of the managing directors of Palm Hills Development Company, and the work teams from the two banks and the company.

Goals of the loan

The loan aims to finance part of the total investment cost for the establishment of an integrated urban project known as Palm Hills New Cairo on an area of ​​500 acres in a prime location in New Cairo near the Administrative Capital.

The project includes many residential units between apartments and villas of various sizes on a total area of ​​land equivalent to 400 acres, in addition to a sports club, an integrated commercial services area and green spaces on a total area of ​​land equivalent to 100 acres, which meets the needs of the residents and provides all amenities.

It is worth mentioning that the company started delivering the housing units in the first phase since the beginning of this year.

On his part, Sherif Riad, CEO of Corporate Credit and Syndicated Loans at the National Bank of Egypt, stated that the National Bank of Egypt’s percentage of the financing amounts to 50%, while the share of Banque Misr is 50%, with a time period of up to 7.5 years left to finance part of the total investment cost for the establishment of an urban project, integrated services serving “Palm Hills – New Cairo” on a plot of land with an area of ​​about 500 acres in a very special location in New Cairo.

Akef Al-Maghraby praised the effective cooperation binding the two banks, which led to the arrangement of this joint financing, and the vital role of the Egyptian banking sector in general in supporting the national economy, stressing that Banque Misr’s participation in this financing is a continuation of its pioneering role in supporting the Egyptian economy.

 The real estate sector is among the most important sectors affecting the Egyptian economy, whose progress impacts all other economic sectors contributing to the implementation of sustainable development plans in the state through the establishment of integrated urban communities in new cities, he explained.

“ Banque Misr believes in the necessity of concerted efforts in supporting the state’s plans to achieve sustainable development and is keen to play its vital role in supporting all activities that contribute to creating a better life for the Egyptian citizen, especially providing adequate housing for individuals, with the aim of alleviating the burdens of all segments of society and raising their standard of living.”

He added that that could be materialized through the bank’s provision of multiple financing methods to individuals, whether by granting them financing housing units through mortgage loans or the  Central Bank of Egypt’s Initiative and real estate financing for low and middle-income, besides the provision of all necessary financing for real estate developers with the aim of catering to the needs of different segments, within the governorates or cities of the new urban communities to reduce overcrowding.

After the signing, Yahya Aboul Fotouh stated that the National Bank of Egypt attaches special importance to supporting real estate development companies, and is keen to support and support real estate developers, adding that the financing contract, which amounts to 5.2 billion pounds, is an extension of the real estate sector projects supported by the bank, which are in line with its strategy in supporting the country’s economic sectors, whose positive results are reflected on the national economy, such as the real estate sector, as it is linked to a wide range of industries and activities, as well as intermediate industries, which the Bank is keen to finance to provide more job opportunities in various disciplines in a way that practically serves development plans.

He praised the role of the work team from the two banks for conducting the necessary studies for such grants with high efficiency, as well as the fruitful cooperation of NBE and Banque Misr, resulting in the successful completion of the financing, through the multiple financing methods provided by the bank, whether for individuals through financing housing units, or real estate developers to fulfill the needs of different segments.

Tarek Tantawy, Co-CEO and Managing Director of the company, said: “I am pleased to announce the conclusion of the syndication contract for the Palm Hills New Cairo project, which is one of the company’s main projects.

This new financing will strengthen the project’s financial position and support the company’s plan to accelerate construction and continue early handovers of residential units.

I would like to thank the leaders and staff of Banque Misr and the National Bank of Egypt for their fruitful and continuous cooperation with Palm Hills.

It is worth commending the role of the banking sector in the continuous support of the Egyptian economy, and that the participation of Banque Misr and the National Bank of Egypt in this loan is a continuation of their pioneering role in supporting the real estate sector, which is one of the most influential and important sectors in the Egyptian economy.”