Orascom Development Egypt Secures EGP 18 Billion Syndicated Loan to Accelerate ”O West” Construction
Orascom Development Egypt (ODE), a leading real estate and tourism developer, announced today, Thursday, that its 70%-owned subsidiary, Orascom Real Estate (ORE), has signed a 10-year syndicated loan agreement valued at EGP 18 billion. The facility is strategically aimed at accelerating the pace of construction and completing the development of its flagship West Cairo project, "O West."
Purpose and Financial Strategy
The company clarified in its statement that the new financing will be deployed to restructure existing debt and inject fresh capital into the project. Specifically, the funds will be used to:
Refinance an existing EGP 6 billion loan currently held by Orascom Real Estate.
Provide the necessary liquidity to expedite ongoing construction phases at "O West."
Extend the group's average debt maturity profile.
Optimize the overall financing structure and bolster financial flexibility to support long-term growth plans.
ODE emphasized that securing a financing package of this magnitude and tenor reflects the strong confidence of financial institutions in Orascom Real Estate. It highlights the company's ability to secure long-term funding on competitive terms, backed by solid operational performance, high-quality assets, and a clear strategic vision.
Banking Consortium and Legal Advisors
The massive syndicated loan was arranged by a consortium of Egypt's leading banks:
Commercial International Bank (CIB): Acted as the Initial Mandated Lead Arranger, Bookrunner, Facility Agent, and Account Bank.
Banque Misr: Acted as the Initial Mandated Lead Arranger, Bookrunner, and Security Agent.
National Bank of Egypt (NBE): Acted as the Initial Mandated Lead Arranger and Bookrunner.
On the legal front, MHA & Partners, in association with White & Case, served as the legal counsel for Orascom Real Estate. Meanwhile, Sarie-Eldin & Partners acted as the legal advisor for the participating banking consortium.
Leadership Perspective
Dr. Eskandar Tooma, Chairman of Orascom Development Egypt, stated that closing this transaction represents a major milestone in the development journey of "O West."
"This long-term financing aligns perfectly with the project's development plan, allowing the company to accelerate construction and continue delivering sustainable, long-term value to both our clients and shareholders," Tooma said. He further noted that the deal significantly strengthens the company's capital structure by improving the cost of funding and increasing the group's financial agility, concluding his statement by thanking the participating banks and legal advisors for their role in the successful transaction.