Orascom Development Egypt (ODE) announced on Sunday that its subsidiary Orascom for Real Estate (ORE) has signed a facility agreement worth 1.5 billion Egyptian pounds ($79.3 million) with Commercial International Bank (CIB Egypt). The facility will 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 has acted as sole financial advisor, lead manager, and sole bookrunner for ORE. MHR & Partners in association with White & Case have been 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." Orascom Development said in a statement. "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." Ashraf Nessim, Orascom Development's Group CFO, said. "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." Nessim added. Tarek Kamel, CEO of O West, said: "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 had achieved unprecedented sales during the first half of this year, as net real estate sales rose 73.6 percent to 2.4 billion pounds, compared to 1.4 billion pounds during the first half of 2021, contributing by 51.4 percent of ODE's total real estate sales in the first half of 2022. "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 maximising the value for the clients we serve and helping them raise their financing needs." Maged El Ayouti, managing director and deputy head of investment banking at EFG Hermes, said in a statement. Meanwhile, Soha Abou Zikry, head of global customer relations at the CIB Egypt, said: "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." Mohamed El-Barouny, head of the corporate banking group at CIB Egypt: "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."
