A banking alliance has entered into a long-term financing contract in the amount of EGP 1.5 billion with Arkan Palm for Real Estate Investment to finance part of the investment cost of the company’s first phase of the real estate project “205” in Sheikh Zayed City.

The alliance comprises five banks: the Export Development Bank of Egypt (EBE), as principal arranger, general coordinator and guarantor; the Housing and Development Bank (HDB); the United Bank; Banque du Canal de Suez and Banque MID.

The contributions of each bank in the financing are distributed as follows: EGP 650m of EBITDA, EGP 300m of HDB, EGP 250m of United Bank, EGP 150m of Suez Canal Bank and EGP 150m of MID Bank.

Mervat Sultan, President of EBE, said this cooperation is not the first among the five banks, and will not be the last in the field of corporate finance.

She underlined her appreciation for the distinctive architectural models offered by Arkan Palm, which correspond to the best international architectural models.

Hassan Ghanem, Chairman of HDB, affirmed the bank’s constant concern to support and provide the necessary financing for major projects. This positively contributes to creating added value for society and to achieving sustainable development. The bank believes in the vital role of the banking sector in supporting the national economy in all areas.

In addition, Hussein Refaey, Chairman and CEO of Suez Canal Bank, underlined the importance of the bank’s participation in this joint financing which targets one of the major real estate development projects, implemented by one of the leading companies in the field.

United Bank chairman Ashraf El-Kady said his bank has always supported real estate investment in all its categories. He noted that United Bank was the 7e biggest bank in terms of pumping real estate investments in the Egyptian market.

Eman Abo Zeid, Bank Credit and Syndicated Loans Sector Manager at MID Bank, highlighted the role of the bank in supporting various projects. This is in line with the state’s ambitious plan to attract investors and provide all facilities to support the investment sector in Egypt.

Mamdouh Badr El-Din, founder and chairman of the Badr El-Din group, said Project 205 is a partnership between the New Urban Communities Authority (NUCA) and Arkan Palm. He noted that the project will act as a central service area in western Cairo, at the economic, commercial, tourist, recreational, educational and medical levels, in cooperation with the main authorities.

The first phase of the project is around 56 feddan. The project includes residential buildings, commercial, administrative and recreational units. It also includes a medical area with an international hospital, medical clinics, a retirement home, a school and three hotels. It is located next to the University of the Nile and directly overlooks the July 26 axis. It will include a 2 km long river surrounding the residential area, separating its residential and service parts.