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Banque Misr and Arab African Bank Sign Long-Term Syndicated Financing Contract Valued EGP 1.57 Billion in Favor of SODIC West Project
14/10/2021
A banking alliance comprising Banque Misr – as the account bank, lead arranger, coverage guarantor and financing marketer – and the Arab African Bank – as financing agent, guarantee agent and debt-servicing account bank – succeeded in signing a long-term financing contract in favor of SODIC, for financing the SODIC West project at Sheikh Zayed, valued EGP 1.57 billion. This new credit facility will be channeled towards re-financing the company's previous credit facility, valued EGP 1.1 billion in addition to financing the remaining portion of the investment cost of sellable units and recurring revenue assets at the company's project in SODIC West.

The signing was attended by Mr. Akef El-Maghraby – Vice Chairman of Banque Misr, Mr. Sherif Elwi – Managing Director and Deputy Chairman of the Arab African Bank and Mr. Magued Sherif – Managing Director of SODIC, together with the teams from both Banks and the company.

Mr. Akef El-Maghraby commended the effective collaboration of the two Banks, which resulted in successfully arranging this joint financing and reiterated Banque Misr's leading role in supporting the Egyptian economy; especially since real estate is considered one of the most impactful sectors, contributing momentously to implementing the state's sustainable development plans, by constructing comprehensive urban communities in new cities. He emphasized the Bank's strive to support all activities that contribute to improving the lives and livelihoods of Egyptian citizens. These include providing suitable housing to all social segments and offering various financing options to individuals – whether for financing the housing units via real estate financing loans or the initiative of the Central Bank of Egypt for persons with limited and mid-level income. This is in addition to providing the required financing to real estate developers, in order to accommodate all social segments.

On his part, Mr. Sherif Elwi – Managing Director and Deputy Chairman of the Arab African Bank – stated: "AAB's leading role in financing real estate developers is based on its extensive experience in offering integrated solutions that provide the required liquidity to expedite project implementation and boost investment; coupled with robust capabilities to offer financing facilities that aligned with the requirements of real estate investors and developers. This financing underscores our belief in the importance of collaboration between banks and property developers, to support and drive the projects of the New Urban Communities Authority (NUCA), which seeks to develop new communities to alleviate congestion – a key pillar of Egypt's Vision 2030."

Mr. Mohamed Khairat – Head of Corporate Credit and Syndicated Loans at Banque Misr – asserted the Bank's keenness to provide the required financing to SODIC West, as a contribution by the Bank to driving the development of the Egyptian real estate market; being one of the most influential and promising sectors of the Egyptian economy.

Ms. Amani Samir – Head of Corporate at the Arab African Bank – stated: "SODIC is considered one of the pioneering real estate development players in the Egyptian market. This financing comes as part of the Bank's continuous support of the real estate sector, which is considered one of the drivers of economic growth."

Commenting on the signature, Mr. Omar El Hamawy – Chief Financial Officer at SODIC – said: "We are pleased to collaborate once again with both Banque Misr and the Arab African Bank, thus cementing our long-term strategic relationship with these two leading institutions. Concluding this credit facility will enable us to build a robust portfolio of recurring revenue assets, while maintaining our monetary resources to support current operations and future growth opportunities."
 
Both Banks continuously seeks to differentiate their services and to maintain their long-standing success, while proactively partaking in constructive partnerships that reflect positively on extending their role in supporting economic activities and achieving economic growth; since the values and strategies of both institutions reflect their commitment to achieving sustainable development and prosperity for Egypt.