SODIC signs EGP 4.14 billion Long-Term Syndicated Facility with Banque Misr and Commercial International Bank to finance New Zayed Project

Leading real estate developer “SODIC” announced today the signature of a long-term syndicated facility with the amount of EGP 4.14 billion with Banque Misr “BM” and the Commercial International Bank “CIB” to finance the development of SODIC’s 464-acre 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-Acres project is planned to be New Zayed’s city center، bringing exciting new concepts for learning، retail، sports، leisure، and working spaces. Home to over 5،000 units، the 464-Acres is 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، is a testament to SODIC’s credibility and reflects the banks’ confidence in the company’s ability to consistently deliver on its commitments

Increasing leverage

SODIC’s leverage has been historically low، with bank debt outstanding recorded at EGP 3.0 billion on June 30، 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.

The signing ceremony was attended by Ayman Amer، SODIC’s General Manager، Mohamed El-Etreby، Banque Misr Chairman، Hossam El-Din Abdel Wahab، Banque Misr Vice-Chairman، Amr El Ganainy، CIB’s Deputy CEO & MD، and senior members from SODIC، Banque Misr and CIB.

Commenting on the transaction، Ayman Amer، SODIC’s General Manager، said: “It is a pleasure working again with Banque Misr and CIB، two of our longstanding partners and leading Egyptian banks. 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 endeavors”.

Commenting on the transaction، Mohamed El-Etreby، Chairman of Banque Misr، praised the fruitful collaboration between Banque Misr and CIB، which led to the successful completion of this financing. He also highlighted the vital role of the Egyptian banking sector in supporting the national economy.

Banque's Misr's participation

He continued: “Banque Misr's participation in this financing aligns with its leadership role in backing the Egyptian economy، particularly in the real estate sector، which is one of the most influential sectors in Egypt's economy due to its connections with numerous intermediary industries and activities. The bank is committed to financing these sectors to create more job opportunities in various specializations، thereby effectively supporting development plans. As a leading banking institution، Banque Misr is always keen to engage in initiatives and protocols aimed at providing services that meet the needs of all customer segments، acting as a catalyst for national and strategic development، with a firm belief in sustainability and continuous development.”

Commenting on the transaction، Hossam El-Din Abdel Wahab، Vice Chairman of Banque Misr، emphasized that the financing continues the long-standing relationship with SODIC and its investments in Egypt. SODIC is one of the most important and largest real estate developers in the Egyptian market. The financed project is strategically located in New Zayed City، just 10 minutes from SODIC West and near the new Sphinx International Airport. The project is expected to include more than 5،000 units on 464 acres، making it the company’s second-largest project in West Cairo. The project’s design incorporates sustainability factors، with the company collaborating with startups and sustainability-focused companies to achieve these goals. This contributes to the state’s sustainable development plans by establishing integrated urban communities in new cities.

Joining forces with SODIC

Commenting on the transaction، Amr El-Ganainy، CIB’s Deputy CEO & MD، said: “It gives us always a great pleasure in joining forces with SODIC being one of the market leaders in the Real Estate sector. CIB’s strategy has been always directed to support renowned Real Estate developers as SODIC. 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.

Commenting on the transaction، Soha Abou Zikry، Head of Global Corporate Relations at CIB، said: “We are delighted to celebrate the successful signing of this new EGP 4.14 bn syndicated facility with SODIC as this year marks our 10th year anniversary since our first lending transaction in 2014. CIB team is proud to further strengthen its longstanding relationship with reputable entity as SODIC. I would like also to take this opportunity to thank CIB، Banque Misr، Baker & McKenzie and White & Case teams who worked tirelessly to ensure the timely finalization of this milestone transaction.