Transaction Highlights and Context:
- Transaction strengthens EFG Hermes’ leading advisory franchise position in the real estate sector through debt, equity raising and mergers and acquisitions
- The transaction comes after less than two years since ODE set up a USD 265 million multi-currency term loan
- In 2022, EFG Hermes completed an advisory on Bedaya Mortgage Finance’s first securitization issue worth EGP 651.2 million, marking the first-ever securitization issue for a mortgage company in Egypt
- Previously, EFG Hermes arranged and financed for MNHD a financing of EGP 750 million for MNHD as well as a securitization issue of EGP 300 million, the first Egyptian Sukuk issuance for TMG and a financing of EGP 600 million. EGP with LMD Visionary Real Estate Development Company to finance its all-in-one leisure and business complex 3’Sixty
- In 2021, EFG Hermes successfully advised a series of securitization transactions for leading real estate developers, including for TMG, MNHD, SODIC, Misr Italia Properties, Pioneers Properties, among other transactions. In addition, he concluded an advisory for SODIC – a leading property developer in Egypt – on the sale of 85.5% of its EGX-listed shares through an MTO to a consortium consisting of Aldar Properties and ADQ of the UAE in an agreement worth approx. $388 million
Cairo: Orascom Development Egypt (ODE) today announced that its subsidiary Orascom for Real Estate SAE (ORE), has signed a 1.5 billion EGP facility agreement with Commercial International Bank (CIB) to partially finance the development and help accelerate the construction of the phases launched at its flagship O West development, namely Whyte, Tulwa, Club Residences, Hillside and the O-Business District. EFG Hermes acted as sole financial advisor, lead manager and sole bookrunner to ORE, and MHR & Partners in association with White & Case acted as legal advisor to ORE.
The success of this installation agreement marks an important stage in the development cycle of the project and testifies to the credibility and the solid financial profile of O West, as well as the reflection of the confidence in the capacity of ORE to respect its financial commitments.
Ashraf Nessim, Group CFO of Orascom Development, said: “We are extremely pleased with the successful financing of our subsidiary ORE’s O West flagship project. The financing was executed independently of ODE and will give O West an independent capital structure and enable it to accelerate the start of unit deliveries in the first quarter of 2023, ahead of our promise to our customers. This financing demonstrates the confidence of banking institutions in the solid commercial and financial performance of the project from its launch to date. On this front, O West has managed to establish itself as a unique and popular destination in the western region of Cairo, generating one of the best sales performances over the past three years compared to other projects. similar.
Tarek Kamel, CEO of O West, said, “It is a great pleasure for us to have raised this financing, as it reflects our commitment to our customers to deliver our units on schedule and even ahead of schedule. promised delivery dates. This agreement helps to accelerate the pace of construction and increase customer satisfaction, which is one of our main goals at O West. Kamel added that O West achieved unprecedented sales in the first half of this year 2022, with net property sales amounting to EGP 2.4 billion, compared to EGP 1.4 billion in the first half of 2021, with an increase of 73.6%; contributing 51.4% to the total real estate sales of Orascom Development Egypt in the first half of 2022.
Maged El Ayouti, Managing Director and Deputy Head of Investment Banking at EFG Hermes, commented on the transaction: “We are honored to be the financial advisor of choice for O West’s first independent fundraising transaction, the flagship project of primary residences of Orascom Real Estate. O West has already generated substantial interest and this successful installation agreement will help accelerate the delivery of the initial phases ahead of schedule. The transaction continues a series of successful advisory engagements we have successfully completed for ODE, further demonstrating our continued commitment and support to industry heavyweights with the aim of maximizing value for customers we serve and to help them increase their financing needs.
Soha Abou Zikry, Head of Global Client Relations at Commercial International Bank Egypt, also shares his comment on the facility agreement: “We are delighted to celebrate the successful signing of O West’s EGP 1.5 billion project facility. . The CIB team is proud to further strengthen their longstanding relationship with ODE by supporting them in the expansion of their first flagship project in West Cairo and are confident that they will experience another chapter of success. . I take this opportunity to thank ORE, EFG Hermes and MHR & Partners in association with the White & Case teams, who worked tirelessly to ensure the timely completion of this historic transaction”.
Mohamed El-Barouny, Group Head of Corporate Banking at Commercial International Bank, shared an additional comment on the transaction: “Over the years, CIB has built a strong and mutually rewarding relationship with ODE. We are and will always be very enthusiastic about seizing any opportunity that arises with this competent and prestigious group. Today, we add to our Orascom for Real Estate SAE portfolio by financing its elite project “O West” in a transaction totaling EGP 1.5 billion, after being their escrow account bank of choice. We are very pleased with this new partnership and look forward to continuing and developing our long-standing relationship. We take this opportunity to thank all of our counterparties with whom we have joined forces to achieve timely financial close. »
About Orascom Development Egypt (ODE):
Orascom Development Egypt (ODE) is the largest subsidiary of Orascom Development Holding AG (ODH). ODE is an integrated developer of beach resorts in Egypt, with a vertically integrated business model involving the development of residential units, hotels and leisure facilities such as golf courses, town centers and marinas, in plus supporting infrastructure, such as hospitals, schools and public services. ODE currently has a land reserve of 50.5 million square meters and 24 hotels with a total of 4,938 rooms in four operating destinations. El Gouna on the Egyptian Red Sea coast in Hurghada, Taba Heights on the Sinai Peninsula, Makadi in Hurghada and Byoum in Fayoum. ODE has launched O West, the latest addition to its portfolio and its first project in Cairo, Egypt, located in the Sixth of October City.
About EFG Hermes Holding
With a current footprint spanning 13 countries on four continents, EFG Hermes Holding (EGX: HRHO.CA – LSE: EFGD) has grown over 38 successful years from a pure-play investment bank in the MENA region to an impact-focused universal bank in Egypt with the first investment banking franchise in frontier emerging markets (FEM). With our proven track record and a diverse team of talented employees, we provide a wide range of financial services that include advisory, asset management, securities brokerage, research and private equity in the entire GEF region. In our home country, we have the fastest growing Non-Banking Financial Institutions (NBFI) platform with operations spanning Microfinance, Leasing, Factoring, Buy-Now Pay-Later (BNPL), digital payment solutions, mortgage financing and insurance.
Through its three verticals, Investment Banking, Non-Banking Financial Institutions (NBFIs) and Commercial Banking, the group is uniquely positioned to consistently bring disruptive financial products and services to market, delivering a holistic portfolio that serves its growing base of individual and business customers of all sizes.
Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Omani | Jordan | pakistan | United Kingdom | Kenya | United States | Bangladesh | Nigeria | Vietnam
Learn more about us at www.efghermes.com and stay connected with us:
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The EFG Hermes Holding Public Relations Team
May El Gammal
Group Chief Marketing & Communications Officer of EFG Hermes Holding
Note on forward-looking statements
In this press release, EFG Hermes Holding may make forward-looking statements, including, for example, statements about management’s expectations, strategic objectives, growth opportunities and business prospects. These forward-looking statements are not historical facts but represent only EFG Hermes Holding’ beliefs about future events, many of which, by their nature, are inherently uncertain and beyond management’s control and include, among other things, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of,waiting and future laws, regulations and regulatory measures. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.
About SAE International Commercial Bank
Established in 1975, Commercial International Bank (CIB) is Egypt’s first private bank. Each of CIB’s 6,500 employees is dedicated to achieving the Bank’s mission: to deliver a distinctive customer experience through innovation and big data analytics to deliver customer-centric solutions and services that meet to their needs. With a well-established network of over 200 branches, world-class remote channels and digital solutions, CIB provides individuals, households, high net worth individuals, large corporations or small businesses with exceptional services 24/7. /7.
CIB has consistently been recognized as the most profitable bank operating in Egypt and the bank of choice for over 500 of Egypt’s largest companies. CIB was named the best bank in the world in emerging markets by Global Finance in 2018 and 2020, and it received the same title by Euromoney in 2017. CIB is also the first institution in the Middle East to be the subject of a case study as part of the London Business School program for graduate students. In 2021, Bloomberg included CIB in its “Gender Equality Index”, making it the first company in Egypt and Africa to be listed on the index, which includes 380 companies from 44 countries representing 11 sectors.
For more information on CIB’s products and services, visit cibeg.com.