Madinet Masr, listed on the Egyptian Stock Exchange under the ticker (MASR.CA), has announced a significant achievement in securing a medium-term revolving joint financing facility amounting to EGP 9 billion, Invest-Gate reports.
This funding comes from a banking consortium comprising several local and international banks operating within Egypt. The financing aims to cover a portion of the investment costs associated with the key phases of the flagship Taj City and Sarai projects, thereby enhancing the financial stability of it and sustaining its growing economic performance, solidifying its leading position in the Egyptian real estate sector.
The financing is structured into two tranches: the first tranche, valued at EGP 4 billion, is allocated for the Taj City mixed-use development in New Cairo, which spans 3.5 million square meters and is divided into five phases. The second tranche, amounting to EGP 5 billion, is designated for the Sarai mixed-use project, covering 5.5 million square meters and strategically located near the new administrative capital. Additionally, the funds will be utilized to repay part of existing loans to other banks. The long-term financing will extend for a period of 7 years and 5 months, providing Madinet Masr with the necessary financial stability to expedite its ambitious development plans.
Leading this consortium is the Commercial International Bank (CIB), which serves as the main arranger, marketer, and financing agent, along with six other prominent banks: First Abu Dhabi Bank – Egypt, Al Baraka Bank – Egypt, Abu Dhabi Commercial Bank – Egypt, the Egyptian Export Development Bank, the Housing and Development Bank, and the Industrial Development Bank. This collaboration reflects the strong confidence that lending banks have in Madinet Masr’s strategic vision and its robust financial position.
Commenting on the financing deal, Engineer Abdullah Sallam, CEO and Managing Director of Madinet Masr, stated, “This significant achievement underscores the trust that a consortium of seven leading banks in Egypt, led by CIB, places in Madinet Masr’s strategic vision and operational capabilities. Our objective with this financing is to expand our land portfolio, which will drive us towards achieving our ambitious goals in developing sustainable communities that cater to the needs of future generations.”
In a related statement, Mr. Amr El-Ganayni, Vice President and Managing Director at Commercial International Bank, expressed his satisfaction with the signing of the EGP 9 billion joint financing agreement for a period of 7.5 years in favor of Madinet Masr for Housing and Development. He emphasized the bank’s pride in strengthening its long-term relationship with Madinet Masr by providing the necessary support for the development of its key real estate projects in East Cairo, reaffirming their confidence in the company’s ability to write a new chapter in its success story.
Mohamed Abbas Fayed, CEO and Managing Director of Abu Dhabi First Bank Egypt, expressed pride in the bank’s involvement in supporting Madinet Masr, a prominent housing and development company, through its participation as the second-largest bank in a long-term syndicated loan facility worth EGP 9 billion. The bank’s total share amounts to EGP 1.35 billion as the lead arranger and guarantor. Fayed emphasized that this initiative reflects the bank’s strong commitment to bolstering financial activities in Egypt by engaging in the arrangement of major syndicated loans, which in turn stimulates economic growth, creates job opportunities, and revitalizes the real estate market.
Ihab El-Sweirki, Managing Director and CEO of Abu Dhabi Commercial Bank – Egypt, also highlighted the importance of this joint loan for Madinet Masr. He reaffirmed the substantial support that Abu Dhabi Commercial Bank offers to the real estate development sector and the national economy.
Hazem Hijazi, CEO and Deputy Chairman of Al Baraka Bank, expressed his delight at Al Baraka Bank Egypt’s involvement in this agreement to support two flagship projects of Madinet Masr: Taj City and Sarai. He pointed out that their participation as the lead arranger with a share of EGP 700 million reflects the bank’s ongoing commitment to implementing its strategy, which aims to enhance its financing portfolio by 2025 through effective partnerships with banks and financial institutions.