5 Banks to Meet Today to Discuss AFGRE’s Cairo Festival City Loan

In a new recent development regarding Al-Futtaim Group Real Estate (AFGRE)’s EGP 2 billion loan –  the 5 loan arrangers will be meeting today so as to set out a final timetable for signing the loan agreement.

The five banks to arrange Al-Futtaim’s loan are; the Commercial International Bank of Egypt (CIB), HSBC, Arab African International Bank, Banque Misr and Banque De Caire.

The loan is designated to fund construction of AFGRE’s mall in New Cairo, as a part of its project Cairo Festival City.  The Group is currently working on its Cairo Festival City project with estimated costs of EGP 3.4 billion.

A senior source from one of the 5 lenders told Amwal Al Ghad that the meeting aims to set out a final timetable for signing Al-Futtaim’s EGP 2 billion loan as well as to agree on the amount of the contributions of each bank to the loan.

Meanwhile, another official source from Banque Du Caire stated that his bank is planning to contribute with EGP 350 million to AFGRE’s loan.

Notwithstanding the planned meetings among the 5 lenders, sources with knowledge in AFGRE revealed that the group is currently considering postponement of obtaining the loan.

It is worth mentioning that AFGRE had obtained a bridge loan worth EGP 400 million from HSBC by the beginning of 2013.

Elsewhere, Eng. Magdi Farahat – Egypt’s Deputy Housing Minister – said the New Urban Communities Authority ( NUCA ) has recently reached a final agreement with Dubai-based Al-Futtaim Group and Saudi-based  Al-Hokair Group over disputed lands in New Cairo and 6th of October City.

Al-Futtaim Group Real Estate (AFGRE) is the real estate development and operations arm of Al-Futtaim Group. It is responsible for the origination, conception, development, procurement and construction of mega projects and the leasing and operation of these projects after completion.