- Tatweer Misr signed a medium-term facility contract with Arab African International Bank (AAIB) for EGP 3.5 billion.
- Tatweer Misr aims to use the funding to boost investment in the Egyptian market and increase job creation.
- The deal reflects a strong confidence in Tatweer Misr by the banking sector and the anticipated growth in the Egyptian real estate market.
- The funds are designated for accelerating construction on the “IL Monte Galala” project in Ain Sokhna and “Bloomfields” in Mostakbal City.
Egypt’s Tatweer Misr, a property development firm, announced it inked a medium-term facility agreement valued at EGP 3.5 billion with the Arab African International Bank (AAIB) in a move poised to significantly expedite the construction of two major real estate developments, according to a company statement.
The real estate developer, which boasts a portfolio of mega projects across Egypt, particularly in Cairo, Ain Sokhna, and the North Coast, is to use the funds to expedite construction
The strategy aligns with the company’s goal of contributing to the growth of Egypt’s economy and generating job opportunities.
This strategic funding aims to progress the development of the “IL Monte Galala” and “Bloomfields” projects, located in Ain Sokhna and Mostakbal City, respectively.
The facility, marketed by AAIB to various banks within Egypt, will see AAIB take on multiple pivotal roles including principal, lead arranger, and guarantee agent. Legal advisory for the contract was provided by Matouk Bassiouny & Hennawy for AAIB, and Sarie El-Din and Partners for Tatweer Misr.
Shalaby highlighted the banking sector’s confidence in Tatweer Misr’s robustness and its affirmation of the future potential of Egypt’s real estate market. He underscored the company’s focus on advancing the construction pace and operating a non-residential portfolio that promotes a dynamic lifestyle and ensures recurring developer income.
With over 2,800 units already delivered in their various projects, Tatweer Misr‘s planned utilization of the new funds aims to boost annual delivery rates to an average of 2,000 units.
Mohab Saad, Vice President of Finance and Operations at Tatweer Misr, commended the facility’s favorable terms and the company’s approach to diversifying funding sources to regularize construction processes.
AAIB’s Deputy Managing Director, Tamer Khalifa, reiterated the bank’s expertise in real estate financing, emphasizing its role in ensuring liquidity and fostering the development of comprehensive urban and tourist communities in alignment with Egypt’s 2030 vision.
Amani Samir of AAIB expressed her enthusiasm for the partnership with Tatweer Misr in this first structural financing process. She anticipates a broadening of cooperation to include a wide array of banking products, while also commending the professionalism that led to the completion of the facility.
The agreement was signed by Dr. Ahmed Shalaby, President and CEO of Tatweer Misr, and Mr. Tamer Khalifa, Deputy Managing Director of AAIB. The signing ceremony was attended by key figures from both organizations, including Eng. Baher Ayoub, Senior Vice President, CEO Projects and Board Member of Tatweer Misr, and Dr. Amani Samir, Head of Corporate and Institutional Banking at AAIB, alongside a roster of executive members.
Earlier this year, Tatweer Misr signed an MOU with the Saudi Arabian Ministries of Investment, Municipal and Rural Affairs, and Housing to explore investment opportunities in the region for both Egypt and Saudi Arabia.
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