Cairo, Egypt: Leading real estate developer “SODIC” today announced the signing of a long-term syndicated facility in the amount of EGP 1.57 billion with Arab African International Bank (AAIB) and Banque Misr (BM) to finance its flagship development west of Cairo, SODIC West. The facility will be used to refinance the outstanding EGP 1.1 billion on the EGP 1.3 billion medium-term facility signed in April 2017 and to partially finance the remaining CAPEX on the asset investment portfolio. rental and real estate development projects of SODIC Ouest.
The signing of the facility with two of the major Egyptian banks, namely Arab African International Bank (AAIB) and Banque Misr (BM) which acted as lead co-arrangers of the facility agreement, reflects the credibility of SODIC as a developer and the banks’ confidence in SODIC’s ability to meet its commitments. This credibility, coupled with SODIC’s long-term relationships with major Egyptian banks, facilitates the company’s access to the debt market, supporting SODIC’s growth efforts.
The facility is in line with SODIC’s goal of prudently increasing its leverage to improve shareholder returns and is a testament to SODIC’s strong financial performance, strong cash flow and liquid balance sheet. SODIC’s leverage remains low, with outstanding bank debt recorded at EGP 2.4 billion as of June 30, 2021, reflecting a debt-to-equity ratio of 0.4x.
The signing ceremony took place in the presence of Magued Sherif, Director General of SODIC; Sherif Alwy, vice-president and general manager of AAIB, Akef ElMaghraby, vice-president of Banque Misr, and senior members of SODIC and the two banks. Commenting on the transaction, Omar Elhamawy, CFO of SODIC, said: âIt is a pleasure to work again with AAIB and Banque Misr on this facility and to renew our long-term strategic relationship with these two premier banks. plan. The facility will allow us to develop our investment portfolio of recurring income assets while preserving our cash resources and the liquidity of our balance sheet to support ongoing operations and pursue growth opportunities â.
âAAIB’s leading role in financing real estate developers is based on our expertise in providing comprehensive liquidity solutions necessary for the execution of real estate projects, while enhancing investments and providing credit facilities. that meet the needs of investors and developers, âadded Sherif Alwy, AAIB Vice President and General Manager. “This facility was a reflection of our belief in the important role played by Egyptian banks in supporting the real estate sector, meeting its financial needs and encouraging NUCA projects that aspire to create new communities to fight against overpopulation, which is an integral part of Egypt’s Vision 2030 â.
Akef ElMaghraby, Vice-President of Banque Misr, praised the cooperation between AAIB and Banque Misr, which led to the establishment of this facility. Akef also underlined that the involvement of Misr Bank in this facility reflects its leading role in supporting the Egyptian economy, especially in the real estate sector, one of the most impactful sectors and the engine of others. sectors of the local economy. He added that real estate support helps drive sustainable development plans in Egypt by establishing new integrated communities in new cities.
SODIC is one of the leading real estate development companies in the region, currently developing a number of diversified projects in Egypt. SODIC’s developments in east and west Cairo and on the north coast of Egypt range from residential, commercial and commercial projects to large-scale mixed-use developments. SODIC is listed on the Egyptian Stock Exchange (OCDI Ticker). For more information, please visit www.sodic.com
Â© Press release 2021