Two banking consortia to offer Egypt’s Medinet Nasr $168.8 mln loan in days

Egyptian property developer Medinet Nasr will receive this week two offers from two banking consortia competing to secure a loan worth around 1.5 billion Egyptian pounds ($168.8 million).

The first offer is made by a consortium of three banks; the National Bank of Egypt (NBE), Commercial International Bank (CIB), and Arab African International Bank (AAIB), a banking source near from the talks told Amwal Al Ghad on Monday.

The second consortium involves Banque Misr, Bank Audi Egypt, Emirates NBD Bank, Egyptian Gulf Bank (EGB), and NBK-Egypt, the source added.

Medinet Nasr seeks to obtain a loan of up to 1.7 billion pounds to finance two projects and some general works. The company needs 800 million pounds to finance utilising works in a land plot in Suez road where a project is being prepared in partnership with property major Palm Hills. An additional 700 million pounds will go for finishing all the stages in Medinet Nasr’s Taj City project.

The source further said that the remaining 200 million pounds would finance some general works for the company.

The required amount of financing will be decreased to 1.5 billion pounds as the two banking alliances will present their offers within the coming few days, the source added. For this purpose, Medinet Nasr is working on narrowing the investment costs of its two projects.

The loan is expected to be paid back over 7 or 8 years, the source said.