Orascom Development Egypt said that its subsidiary Orascom Real Estate had secured an 18 billion Egyptian pound syndicated loan with Commercial International Bank Egypt (CIB), Banque Misr, and the National Bank of Egypt (NBE) to finance the development of its O West project in West Cairo.
“The 10-year financing facility will support current and future construction phases of the mixed-use development, helping accelerate construction and meet growing demand for the project,” the company said. The agreement was signed in the presence of Orascom Development Holding Board Chairman Naguib Sawiris, Orascom Development Egypt Board Chairman Eskandar Tooma, and senior executives from the participating banks.
The financing consortium includes CIB as initial mandated lead arranger, financing arranger, facility agent and account bank; Banque Misr as initial mandated lead arranger, financing arranger and security agent; and National Bank of Egypt as initial mandated lead arranger and financing arranger.
The long-term financing reflected confidence from major banking institutions in Orascom Real Estate’s operating performance, asset base and growth strategy. The deal represented cooperation between the banking and real estate sectors to support long-term investment in Egypt.
“We believe at Orascom Development that real investment is long-term investment, and therefore we view the Egyptian market as one of the most promising markets in the region, with strong growth potential and investment opportunities,” Tooma said. “Our continued investment and expansion reflect our confidence in the future of this market and its ability to create sustainable value over the long term,” he added.
Tooma also said "O West was designed not only as a real estate project but as a sustainable city offering an integrated living experience." “This agreement will support the project’s future expansions, keeping pace with demand and ensuring the completion of our vision according to the highest quality standards,” he said.
“This financing reflects the strategic role that CIB continues to play in arranging and managing syndicated loans, contributing to economic growth and strengthening Egypt’s real estate development sector," CIB Deputy CEO and Executive Board Member Amr el-Ganainy said.Banque Misr CEO Hisham Okasha said the bank’s 7 billion pound participation was part of its efforts to provide financing solutions for key economic sectors.
“The bank places special focus on supporting real estate developers and major urban projects, which contributes to attracting more investments, creating jobs and advancing economic development in line with Egypt’s Vision 2030,” Okasha said.