Al Futtaim Asks HSBC, CIB To Arrange EGP 2 Bln Loan

Al Futtaim Group has asked HSBC Bank Egypt and Commercial International Bank (CIB) to take faster steps to arrange for  a syndicated loan worth EGP 2 billion, after it has become close to signing the settlement agreement with the government, and thereby receiving the licenses that were awaited for more than two years and half, sources said.

Sources revealed that both banks plan to ask Arab African International Bank (AAIB), Banque Misr, Banque Du Caire and Arab Bank to contribute to the loan. Al Futtaim Group has received a bridge loan with value ranging from EGP 300 million to EGP 400 million from HSBC Bank Egypt last month.

The loan will be used to finance a mall in Cairo Festival City project being established by Al Futtaim Group with expected cost of EGP 3.4 billion.

The Egyptian government was about to reach an agreement with Al Futtaim Group on the land dispute of the project. The agreement stipulates the transfer of the ownership of the land to Al Futtaim with extending the period of establishment to 2014, but it conditioned that the UAE’s Group shall pay an additional sum of EGP 420 million to bridge the gap between what they paid for the land under the previous government and what the current authorities deem a fair value. The Group approved to pay the additional sum, but insisted on increasing the area of the land. Accordingly, the Prosecutor General transferred the dispute case to the committee of experts.