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National Bank of Egypt manages over EGP 134bn worth financing deals in H1 2021 Bank allocates EGP 30bn for new mortgage financing initiative with 3% interest rate
The National Bank of Egypt (NBE) has managed 27 financing deals with a total value exceeding EGP 134bn during the first half (H1) of 2021. A study prepared by Bloomberg International on syndicated loans during the period revealed that the NBE ranked as the best bank in the Egyptian and African banking market for its various roles. These include serving as the financing agent, the main arranger, and the marketer of the syndicated loans. The results also showed that the bank ranked fourth as main arranger, agent for financing, and marketer of syndicated loans in the Middle East and North Africa (MENA) region, after international banks and financial institutions. It reflected the bank's leadership in the syndicated loans field in Egypt, the Middle East, and Africa according to NBE Chairperson Hisham Okasha. He added that this success is a reflection of the bank's continuous endeavour to provide financing needs through arranging, managing, and marketing syndicated loan deals of creditworthiness and economic feasibility. These contribute to creating added value in various vital sectors of the Egyptian economy, in addition to advancing the development process. This provides more job opportunities and increases rates of economic growth, despite the great challenges that Egypt and the world have recently witnessed. Yehia Aboul Fotouh, Vice-Chairperson of the bank, expressed his pride in the NBE's continued achievements towards this distinguished position. He pointed out that this success is a culmination of the efforts made by the bank's specialists, and a result of the strong network of relations that link the bank with local and international banks. The latter have confidence in the NBE's ability to complete and manage major deals to a high level of professionalism. Aboul Fotouh added that the bank pays great attention to syndicated loan deals, relying on a huge capital base that allows for the necessary funds to be provided in various economic sectors. These include transportation, infrastructure, and real estate development, whose positive results reflect on the national economy. Sherif Reyad, CEO of Corporate Credit and Syndicated Loans at the NBE, said that this position reflects the bank's professionalism and its ability to arrange and manage syndicated loans in various economic sectors. He stressed the importance of effective and fruitful cooperation with all Egyptian banks. This also reflects the understanding, harmony, and strength of the relationship between operating banks in Egypt, and the ability of the banking sector to provide liquidity to various economic sectors. Ahmed El-Sersy, Head of the Syndicated Loans Sector at the NBE, added that the bank's specialised team was professionally able to conclude 27 deals in several economic sectors. These took place through various financing solutions that suit the special nature of each sector and meet the needs of customers, based on studies. On the other hand, Aboul Fotouh said that the bank allocated about EGP 30bn for the new mortgage finance initiative with an interest rate of 3%. The market is awaiting the launch of the new initiative with a 30-year repayment period, for which about EGP 100bn has been allocated. He added that the bank has pumped over EGP 10bn into the previous mortgage financing initiative for about 100,000 customers. According to the available data, the new real estate finance initiative, which is expected to be launched in the coming days, has set several conditions for the target groups, the customer's net monthly income, and the unit price. The initial instructions stipulated that for low-income groups benefiting from the initiative, the maximum net monthly income for the single individual should be EGP 4,500, and for family EGP 6,000. Meanwhile, the maximum unit price shall be according to the stipulations of the Social Housing and Mortgage Finance Fund, with the category provided by the client to be 10% of the total value of the unit. For middle-income groups, the maximum net monthly income for a single individual should be EGP 10,000, and the family about EGP 14,000. This is provided that 15% is paid as a down payment for the housing unit up to EGP 1.1m, and 20% as a down payment for the unit between EGP 1.1m and EGP 1.4m.
