EFG Hermes concludes advisory on $195.78mn loan for Cairo – O West project

The loan will support ORE’s plan to accelerate the pace of construction and continue the delivery programme

The advisory for a syndicated ten-year loan of US $195.78mn for Orascom Development Egypt’s (ODE) subsidiary Orascom for Real Estate (ORE) has been successfully completed by EFG Hermes’ investment banking division. EFG Hermes served as the sole financial advisor, lead manager, and bookrunner for ORE; the loan will finance ORE’s Cairo – O West project.

According to a report, the transaction marks an important milestone in the development cycle of the O West project, and is a testament to its strong financial profile. The loan will support ORE’s plan to accelerate the pace of construction and continue the delivery programme, which started earlier this year. $49mn will be directed to refinance the bridge facility obtained last year for the project.

The transaction follows EFG Hermes’ successfully closing numerous sizeable debt transactions over the last year in general and in the real estate sector in particular.

“This transaction serves as a testament to the enduring partnership forged between EFG Hermes and ODE, marked by a series of successful advisory assignments over the past few years, including the $49mn facility agreement conducted last year and ODE’s $265 million multi-currency syndicated debt. The transaction also demonstrates EFG Hermes’ ability to secure highly competitive funding packages from a distinguished group of lenders despite challenging market conditions to fund leading projects,” said Maged El Ayouti, Managing Director and Deputy Head of Investment Banking at EFG Hermes.

Despite prevailing market conditions and a high-interest rate environment, the debt market remains open for leading corporates who can raise capital at competitive terms. EFG Hermes has also successfully concluded debt advisory transactions with leading developers in Egypt, namely TMG, as well as Palm Hills Developments, Orascom Development Egypt, Madinet Masr (previously Madinet Nasr for Housing and Development), Marakez, SODIC, and Misr Italia Properties, amongst others, the firm noted.

The bank noted this is in addition to debt financing transactions concluded with leading mortgage providers, including the Egyptian Mortgage Finance Company (EMRC), Bedaya Mortgage Finance, and Al Taamir Mortgage Finance.

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