EBRD arranges $265m financing for ADD Properties' Egyptian hotel expansion
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The European Bank for Reconstruction and Development is leading a US$265 million syndicated package for ADD Properties, part of Sami Saad Holding, to modernise its hospitality portfolio and build a Grand Hyatt in West Cairo.
The European Bank for Reconstruction and Development (EBRD) is arranging a US$265 million financing package to support the expansion and modernisation of the hospitality operations of ADD Properties, a member of Sami Saad Holding, in Egypt, the bank said on 30 October.
The EBRD has been mandated as initial lead arranger and bookrunner and is providing the largest facility at US$127.5 million. The International Finance Corporation is extending a US$60 million loan as mandated lead arranger through the Mutual Reliance Framework, while Emirates NBD Egypt is providing US$40 million as mandated lead arranger, global facility agent and onshore account bank. National Bank of Egypt, acting as mandated lead arranger, local facility agent and onshore security agent, is lending US$37.5 million. EFG Hermes, an EFG Holding company, is sole financial advisor and bookrunner on the transaction.
The bank said the financing is intended to strengthen ADD Properties' capital structure, support the growth of its hospitality portfolio and consolidate asset value during a period of significant capital deployment anchored by the development of a new Grand Hyatt hotel in West Cairo.
Bassel Sami Saad, chairman of ADD Properties, said the partnership reflected the confidence of international and regional financial institutions in Egypt's investment potential, adding that the company is advancing sustainable hospitality and branded residence development in line with Egypt Vision 2030.
Vlaho Kojakovic, EBRD director for real estate, said Egypt's tourism sector has significant potential to drive investment, job creation and sustainable economic growth, and that the financing supports the development of a more sustainable and competitive tourism sector.
The package will be complemented by technical assistance to deliver training programmes for young women and men in Cairo and Hurghada, aimed at strengthening the supply of skilled labour in Egypt's hospitality sector. The EBRD framed the deal around Egypt's national tourism strategy and the regeneration of the Giza Plateau following the opening of the Grand Egyptian Museum.