NBE Agrees to Contribute EGP150mn to Palm Hill’s Bridge Loan

National bank of Egypt (NBE) has participated in the bridge loan with EGP400 million which obtained by real estate developer Palm Hills Development (PHDC.CA) from the total value of the basic loan that amounted to EGP2.4 billion, Senior banking sources revealed.

In statements to Amwal Al Ghad, the sources added that Arab African International Bank (AAIB) provided the remaining share from the bridge loan that valued at EGP250 million, stressing that the main loan will be signed during the current month.

The three arranged banks for the loan are AAIB, Banque Misr and NBE are waiting the final approvals from the five banks that  initially approvals to take part in the loan but the five banks are currently in talks with the board of directors in order to obtain the final approval, sources explained.

The number of the loan’s participants may boost to 9 banks after the three arranged banks get the final approvals from the four banks including Faisal Islamic bank, Audi bank, and Egyptian Gulf bank (EGB) and AAIB, sources noted.

The 3 banks may also resort to allocating the shares of the syndicated banks before the final agreement as the board’s values exceeded the total value of finance.

PHD is aiming to obtain a loan in order to go for financing its various projects in addition to, refinancing an EGP640 million from the total current banks loan.

Meanwhile, Palm Hills achieved EGP236.8 million net profits in 2013 against EGP134.6 million net losses in 2012.