NBE, Banque Misr Arrange EGP 8bn Loan for Palm Hills New Cairo Project

The National Bank of Egypt (NBE) and Banque Misr have arranged an EGP 8 billion long-term syndicated financing facility for Palm for Investment and Real Estate Development, a subsidiary of Palm Hills Developments, to finance part of the investment cost of the Palm Hills New Cairo project.

The facility is split equally between the two banks, with each contributing EGP 4 billion. NBE acted as initial mandated lead arranger, financing marketer, security agent, debt service reserve account bank and documentation bank, while Banque Misr acted as initial mandated lead arranger, financing marketer, facility agent, account bank and escrow account bank.

The financing will support the completion of the project's current and future development phases and accelerate construction work. Palm Hills New Cairo spans approximately 500 feddans in East Cairo and includes villas, apartment buildings, service areas, commercial and administrative units, and a sports and social club.

Soha El-Turky, Deputy CEO of NBE, said the bank places particular importance on supporting real estate development companies and developers amid the challenges facing the property market. Hesham Okasha, CEO of Banque Misr, said the bank's participation reflects its commitment to supporting major real estate and urban development projects given the sector's strategic importance to the Egyptian economy.

The agreement was signed in the presence of senior executives including Yasseen Mansour, Chairperson and CEO of Palm Hills Group; Hazem Badran, Co-CEO and Managing Director of Palm Hills; and Ali Thabet, Chief Financial Officer of Palm Hills. The two banks said the transaction aligns with their strategies of financing sectors with broad impact on economic activity.