Fawaz AlHokair Group’s mall development unit Marakez has signed an EGP 670 mn syndicated loan agreement with multiple local banks to finance the execution of phase II of east Cairo’s Mall of Katameya, Invest-Gate reports.

Each of Banque Misr, Banque du Caire (BdC), and the Arab African International Bank (AAIB) contributed an equal share of the loan arrangement, which covers 50% of the EGP 1.34 bn total investment cost of the mall’s second phase, BdC Chairman Tarek Fayed confirmed in a press release on August 11.

BdC assumes the role of financing agent and the AAIB acts as the guarantor, while Banque Misr is the general coordinator in the financing contract. The legal advisor to the banks is Sarie-Eldin & Partners, but Helmy, Hamza & Co is the legal advisor to the borrower.

Phase II of Mall of Katameya represents approximately 30% of the entire project’s total area. The shopping center is projected to gradually begin operations starting from 2021.

In 2019, Banque Misr had led an alliance of five Egypt-based banks to extend a syndicated loan of EGP 1.5 bn to fund phase I of Mall of Katameya, including the aforementioned institutions as well as the Arab International Bank and Misr Iran Development Bank, according to a previous statement.