MON, 25 JULY, 2022-theGBJournal| Orascom Development Egypt (ODE) announced today that its subsidiary Orascom for Real Estate S.A.E (ORE), has signed EGP 1.5 billion facility agreement with Commercial International Bank (CIB) to partially finance the development and help accelerate the construction of the launched phases at its flagship development, O West, namely Whyte, Tulwa, Club Residences, Hillside and the O-Business District.
EFG Hermes acted as sole financial advisor, lead manager and sole bookrunner for ORE, and MHR & Partners in association with White & Case as legal counsel for ORE.
The success of this facility agreement marks an important milestone in the development cycle of the project and stands testament to the credibility and the strong financial profile of O West as well as a reflection of the confidence in ORE’s ability to deliver on its financial commitments.
Ashraf Nessim, Orascom Development’s Group CFO commented: “We are extremely pleased about the successful financing of our subsidiary ORE’s flagship O West project. The financing was executed independently from ODE and will give O West an independent capital structure and allow it to accelerate the commencement of unit deliveries in Q1 2023, ahead of our promise to our customers.
This financing is testament to the confidence banking institutions have towards the strong sales and financial performance of the project since launch to date. On this front, O West has successfully managed to establish itself as a unique and popular destination in the West Cairo area, generating one of the highest sales performances over the last three years when compared to other similar projects.”
Tarek Kamel, CEO of O West, said: “It gives us great pleasure to have raised this financing, as it reflects our commitment to our customers in delivering our units according to the set schedules and even ahead of promised delivery dates.
This agreement contributes to accelerating the pace of construction and achieving more customer satisfaction, which is one of our main objectives at O West.” Kamel added that O West has achieved unprecedented sales during the first half of this year 2022, as net real estate sales amounted to EGP 2.4 billion, compared to EGP 1.4 billion during the first half of 2021, with an increase of 73.6%; contributing by 51.4% of the total real estate sales of Orascom Development Egypt in the first half of 2022.
Commenting on the transaction is Maged El Ayouti, Managing Director and Deputy Head of Investment Banking at EFG Hermes, “We are honored to be the financial advisor of choice on O West’s debut independent capital raising transaction, Orascom Real Estate’ primary homes flagship project. O West has already generated substantial interest and this successful facility agreement will help accelerate the delivery of initial phases ahead of schedule. The transaction is a continuation to a series of advisory assignments we have successfully concluded for ODE, further showcasing our continuous commitment and support towards industry heavyweights with the aim of maximizing the value for the clients we serve and helping them raise their financing needs.”
Also sharing her commentary on the facility agreement is Soha Abou Zikry, Head of Global Customer Relations of Commercial International Bank Egypt, “We are delighted to celebrate the successful signing of O West’s EGP 1.5 billion project facility. The CIB team is proud to further strengthen its longstanding relationship with the ODE by supporting them in expanding their first flagship project in West Cairo and are confident that they will witness another chapter of success. I would like to take this opportunity to thank ORE, EFG Hermes, and the MHR & Partners in association with White & Case teams, who worked tirelessly to ensure the timely finalization of this milestone transaction”.
Mohamed El-Barouny, Head of the Corporate Banking Group at Commercial International Bank, shared additional commentary on the transaction, “Over the years, CIB has built a solid and mutually rewarding relationship with the ODE. We are and will always be very bullish to pursue any opportunity arising with this competent and prestigious group. Today we add to our portfolio Orascom for Real Estate S.A.E. through financing its elite project “O West” in a transaction totaling EGP 1.5 billion, after being their Escrow Account bank of choice. We are very happy with this new partnership and look forward to continuing and building on our long-standing relationship. We seize this chance to thank all our counter parties with whom we joined forces to timely reach financial closure.”
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