Banking alliance extends EGP 10.3B loan to Palm Urban for Badya project

Updated 10/3/2024 8:14:00 AM

Arab Finance: A banking consortium of eight financial institutions has granted a long-term syndicated loan of EGP 10.3 billion to Palm Urban Development Company, a subsidiary of Palm Hills, as per an emailed press release.

The alliance includes major banks, including Banque Misr, which acted as the initial lead arranger, finance marketer, and agent, along with the National Bank of Egypt (NBE), Banque du Caire, Emirates NBD, Abu Dhabi Commercial Bank, Al Baraka Bank, Al Ahli Bank of Kuwait-Egypt, and the Industrial Development Bank.

Palm Urban will use the loan to partially fund the Badya urban development project in New October City.

This loan marks the largest private-sector real estate financing deal in Egypt.

The project, which spans 3,000 feddans, is Egypt's first sustainable city in line with the United Nations Sustainable Development Goals and the first smart city in West Cairo.

Located strategically near the Giza Pyramids, the Sphinx International Airport, and just 45 minutes from the New Administrative Capital, the project aims to link West and East Cairo.

Badya City will be an integrated community offering residential, commercial, administrative, and entertainment spaces, as well as educational, sports, and social facilities.

It stands out for its focus on sustainability, utilizing artificial intelligence and modern technologies to reduce operational costs by 20%, cut water and energy consumption by 30%, and produce 30% of its energy from renewable sources.