Talaat Moustafa Group In Talks With AAIB Over EGP 1.2 Bln Loan

The Talaat Moustafa Group (TMG) Holding is conducting negotiations with a number of banks to receive a long-term loan worth EGP 1.2 billion to finance the establishment of a mall in Madinaty City, New Cairo.

Sources said TMG submitted a request to the Arab African International Bank (AAIB) asking for the finance and the bank plans to ask other banks such as Banque Misr to contribute to arranging and managing the loan which prepares a feasible study on the project.

AAIB and the Commercial International Bank (CIB) offered in October 2012 finance worth EGP 855 million for TMG used to finance the Company’s expansions of Four Seasons Hotel in Sharm El-Sheikh.

TMG succeeded in passing the turmoil that followed 2011’s revolution unscathed, as it did not default on its loans, sources said, explaining why banks did not retreat in lending the Group.

The Egyptian banks are competing to finance commercial malls because they achieve high profits that enable them repay their debts. A consortium of banks are arranging a syndicated loan of EGP 3 billion for Majid Al Futtaim Holding (MAF Holding) to finance the establishment of Mall of Egypt in Sixth of October City. In addition, a number of banks arranged a loan of EGP 1.6 billion for Al Hokair Group to establish Mall of Arabia in Sixth of October City.