NBE and Banque Misr Sign EGP 8 Billion Financing Deal to Accelerate Palm Hills New Cairo Development

Adham mohamed5 hours ago

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A banking consortium comprising the National Bank of Egypt (NBE), acting as the Initial Mandated Lead Arranger, Financing Bookrunner, Security Agent, Debt Service Reserve Account Bank and Documentation Bank, in cooperation with Banque Misr, acting as the Initial Mandated Lead Arranger, Financing Bookrunner, Facility Agent, Account Bank and Escrow Account Bank, has successfully arranged a long-term syndicated financing facility with a total value of EGP 8 billion for Palm Hills for Real Estate Investment and Development, a subsidiary of Palm Hills Developments, Egypt’s leading luxury real estate developer.

The financing is intended to support the completion of the current and future development phases of the “Palm Hills New Cairo” project and accelerate construction activities in line with the project’s continued growth and increasing demand.

The financing agreement was signed in the presence of Soha El-Torky, Deputy Chief Executive Officer of the National Bank of Egypt; Hisham Okasha, Chief Executive Officer of Banque Misr; Sherif Riad, CEO of Corporate Banking and Syndicated Loans at NBE; Yasseen Mansour, Chairman and CEO of Palm Hills Developments; Amr El-Demerdash, Head of Corporate Credit and Syndicated Loans at Banque Misr; Hazem Badran, Co-CEO and Managing Director of Palm Hills Developments; and Ali Thabet, Chief Financial Officer of Palm Hills Developments, along with a number of senior executives from both banks and the company.

The financing is being provided jointly by the National Bank of Egypt and Banque Misr, with each bank contributing EGP 4 billion. It is aimed at financing part of the investment cost of the “Palm Hills New Cairo” project, which spans approximately 500 feddans and is considered an integrated urban development and one of Palm Hills Developments’ key projects in East Cairo.

The project includes a diverse range of residential units, including villas and apartment buildings, in addition to a services area, commercial and administrative units, as well as a sports and social club.

Soha El-Torky said that the National Bank of Egypt places particular importance on supporting real estate development companies and is keen to support and assist real estate developers amid the challenges facing the property market.

She added that the EGP 8 billion financing agreement represents an extension of the bank’s support for projects in the real estate sector, in line with its strategy of supporting economic sectors whose positive performance has a direct impact on the national economy.

El-Torky noted that the real estate sector is closely linked to a wide range of industries and economic activities, as well as intermediate industries, thereby contributing to the creation of more job opportunities across various fields and practically supporting the country’s development plans.

She also commended the teams at both banks for conducting the necessary studies for the financing facility with a high level of efficiency, as well as the fruitful cooperation between NBE and Banque Misr, which resulted in the successful completion of the financing transaction.

She highlighted the diverse financing solutions offered by the bank, whether to individuals through housing finance or to real estate developers, in a manner that meets the needs of different customer segments.

Hisham Okasha said Banque Misr’s participation in arranging the financing reflects the bank’s 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 employment opportunities.

He added that the bank’s participation is also aligned with the state’s urban development plans under Egypt’s Vision 2030.

Okasha explained that Banque Misr is committed to leveraging its banking expertise and capabilities to provide integrated financing solutions that meet companies’ needs, while strengthening cooperation with banking institutions and major corporations. Such efforts support the implementation of companies’ investment plans and contribute to achieving economic and sustainable development objectives.

He affirmed that the bank’s participation in the financing facility is consistent with its strategy of supporting major projects and enhancing the banking sector’s role in financing investments with economic and developmental impact. This, he said, contributes to advancing the development process and providing innovative financing solutions tailored to the needs of institutional and corporate clients across various sectors.

Yasseen Mansour said the financing reflects the banking sector’s confidence in the group’s strong financial position and its ability to execute major urban development projects.

Mansour added that the financing will support the project’s future expansion while accelerating construction at Palm Hills New Cairo, one of the company’s key projects in East Cairo, in line with growing demand for the development.

He noted that the financing will also help ensure the implementation of the company’s vision of delivering units to customers ahead of their scheduled delivery dates, while simultaneously completing the various components and services of the project in accordance with the highest quality standards.

He added that the financing facility also reflects the confidence of major financial institutions in Palm Hills Developments, its financial strength, the quality of its projects and assets, and its ability to deliver developments that create sustainable value for customers while contributing to Egypt’s urban and economic development.

Mansour further said that cooperation with Banque Misr and the National Bank of Egypt underscores the importance of the partnership between the banking and real estate sectors in supporting major projects and urban development plans.

He pointed out that the group continues to focus on enhancing execution rates across its various projects and improving the efficiency of its investment deployment, in a manner that supports its sustainable growth plans, strengthens its ability to meet its commitments to customers, and enables it to continue developing integrated urban communities that generate sustainable long-term value.

The transaction represents a successful model of cooperation between the banking and real estate sectors, highlighting the pivotal role of financial institutions in supporting major investments and enabling urban development projects to continue their growth and expansion. It also contributes to supporting the national economy and strengthening confidence in Egypt’s investment climate.