(MENAFN- Daily News Egypt) Real estate developer SODIC announced Monday the signing of a long-term syndicated facility worth EGP 4.14bn with Banque Misr and the Commercial International bank (CIB) to finance the development of SODIC's 464-feddan project in New Zayed, home to VYE and Karmell projects.
The facility will be used to partially finance the remaining development cost along with other expenses related to the project.
The 464-feddan project was planned to be New Zayed's city centre, bringing exciting new concepts for learning, retail, sports, leisure, and working spaces. Home to over 5,000 units, the 464-feddan project was set to be SODIC's second largest development in West Cairo, only 10 minutes away from SODIC West.
The signature of the facility with two of Egypt's leading banks, as co-lead arrangers of the facility agreement, was a testament to SODIC's credibility and reflects the banks' confidence in the company's ability to consistently deliver on its commitments.
SODIC's leverage has been historically low, with bank debt outstanding recorded at EGP 3bn on 30 June 2024, reflecting a debt-to-equity ratio of 0.32x. This facility comes in line with SODIC's goal to increase its leverage, enhancing shareholder returns.
Commenting on the transaction, Ayman Amer, SODIC's General Manager, said:“The signing of this facility comes as a testament to SODIC's solid financial performance, strong cash flows, and liquid balance sheet as well as the strength of SODIC's long-term relationships with Egypt's leading banks, facilitating the company's access to the debt market, and supporting SODIC's growth endeavours”.
Mohamed El-Etreby, Chairperson of Banque Misr, said:“Banque Misr's participation in this financing aligns with its leadership role in backing the Egyptian economy, particularly in the real estate sector, which was one of the most influential sectors in Egypt's economy due to its connections with numerous intermediary industries and activities. The bank was committed to financing these sectors to create more job opportunities in various specializations, thereby effectively supporting development plans.”
For his part, Hossam El-Din Abdel Wahab, Vice Chairperson of Banque Misr, emphasized that the financing continues the long-standing relationship with SODIC and its investments in Egypt.
Amr El-Ganainy, CIB's Deputy CEO & MD, said:“The collaboration of two leading banks in the Egyptian banking sector such as CIB and Banque Misr in this new syndicated facility also comes in line with the Governmental urbanization strategy in Egypt which provides support to one of the main pillars in the Egyptian economy.
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