Arab Contractors, an Egyptian construction and contracting company, will sell 4% of its shareholding in El Mostakbal for Urban Development to two local banks, Reuters-affiliated website Zawya reports.

The EGP 2.53 bn deal will be finalized with Banque Misr and the National Bank of Egypt (NBE) in mid-July, Arab Contractors Chairman and CEO Mohsen Salah tells Thomson Reuters Projects in a telephone interview on Sunday, May 20.

El Mostakbal is the master developer of Mostakbal City being constructed in New Cairo over an area of 45 mn square meters.

Each bank will buy 2% and the Arab Contractors will use the funds to pay off debts to both banks, expand its projects, and support its capital, Salah adds

Arab Contractors originally holds 14.95% stake in El Mostakbal, while Banque Misr and NBE own 40% and 4.98% respectively in El Mostakbal.