Banque Misr, BM Lease sign Islamic financing deal for Walk of Cairo project
Banque Misr, Egypt’s second largest bank, and its leasing arm BM Lease have signed on Wednesday a 700 million Egyptian pounds ($44.6 million) Islamic seven-year financing deal with Bonyan for Development and Trade.
The seven-year musharakah financing will help Bonyan complete the remaining phase of its Walk of Cairo (WOC) project, Egypt’s first high-street lifestyle destination.
Bonyan launched WOC project, a one-kilometre-long pedestrian wonderland, in late 2019.
Musharakah is an arrange which complies with Islamic finance standards, whereby partners share in the profits or losses of an enterprise.
The deal will see Banque Misr contributing 93 percent of the musharakah financing, around 650 million pounds. BM Lease will commit 50 million to the sharia-compliant financing.
Akef El Maghraby, vice chairman of Banque Misr, along with Hisham Sheta, managing director and CEO of BM Lease, have signed the deal with Shamel Aboul Fadl, founder and chairman of Compass Capital that runs Bonyan for Development and Trade.
Panther Associates acted as the financial advisor of the transaction for Bonyan.