A banking alliance consisting of Banque Misr as the initial lead arranger, finance marketer, finance agent, account bank, and intermediary account bank; the National Bank of Egypt as the initial lead arranger and finance marketer; Banque du Caire as the initial lead arranger, finance marketer, and debt service consumption account bank; Emirates NBD as the lead arranger and security agent; Abu Dhabi Commercial Bank as the arranger; Al Baraka Bank as the arranger; Al Ahli Bank of Kuwait-Egypt as the arranger; and the Industrial Development Bank as the lender, has successfully granted Palm Urban Development Company, a subsidiary of Palm Hills companies, a long-term syndicated loan of up to EGP 10.3 billion. This loan aims to partially finance the investment cost of the "Badya" urban project in New October City.

Mr. Hesham Okasha, CEO of Banque Misr, and Suha Al-Turki, Deputy CEO of the National Bank of Egypt, attended the signing ceremony. The joint financing contract was signed by Mohamed Khairat, Head of Corporate Credit and Syndicated Loans Sector at Banque Misr; Sherif Riad, CEO of Corporate Banking Credit and Syndicated Loans at the National Bank of Egypt; Mohamed Shaker, Supervisor of the Corporate Banking Credit Group, Syndicated Loans Credit Sector and Structured Finance at Banque du Caire; Tamer Ragheb, Head of Corporate and Financial Institutions Sector at Emirates NBD - Egypt; Hisham Abbas, Executive Board Member and Head of Corporate and Financial Institutions Finance at Abu Dhabi Commercial Bank; Hazem Hegazy, CEO and Vice Chairman of Al Baraka Bank; Khaled Al-Salawy, CEO and Managing Director of Al Ahli Bank of Kuwait - Egypt; Hussein Refaei, Chairman and Managing Director of the Industrial Development Bank; and, on behalf of Palm Hills, Ali Thabet, Managing Director of the Board of Directors for Financial Affairs, and Amr Mahfouz, Deputy CEO for Development. The signing was attended by a distinguished group of leaders from these banks and the company on Wednesday, October 2, 2024. Helmy, Hamza & Partners, Baker & McKenzie International members acted as legal advisors to the banks, and Matouk Bassiouny acted as legal advisors to Palm Hills.

Notably, this financing represents the largest loan ever granted to private sector companies in Egypt's real estate development field. This reflects the banks' strong confidence in the "Badya" City project and its significant role in supporting the national economy and creating new employment opportunities. Badya City project is situated in New October City and is one of the most important investment projects in the real estate sector. It is Egypt's first sustainable city, aligned with the United Nations Sustainable Development Goals, and is also the first smart city in West Cairo, covering an area of approximately 3,000 acres. Positioned strategically near the Giza Pyramids and the new Sphinx International Airport and just 45 minutes from the New Administrative Capital, the project connects West and East Cairo.

The project aims to create a new integrated and multi-use community. It will provide a variety of residential units, commercial, administrative, and entertainment services, as well as educational, sports, and social facilities, along with central parks. The project is also distinguished by its focus on sustainability and providing a healthy environment that meets the needs of its residents. It relies on artificial intelligence technology and modern technology applications, which have helped reduce the project's operating costs by 20% and decrease water and energy consumption rates by 30%. The project aims to produce 30% of its energy from renewable sources. This project is one of the most essential and significant projects of Palm Hills Development Group in the Egyptian market.

Mr. Hesham Okasha, CEO of Banque Misr, emphasized the crucial role of the Egyptian banking sector in supporting the national economy. He highlighted Banque Misr's commitment to supporting the Egyptian economy, particularly in the real estate sector, which has a significant impact on the Egyptian economy due to its association with a wide range of related industries and activities. The bank is dedicated to financing these sectors to create more job opportunities across various specializations, aligning with development plans. Banque Misr's participation in this joint financing is part of its comprehensive marketing strategies to achieve its strategic objectives in supporting the national economy across different fields and sectors. As a leading banking institution, Banque Misr is committed to engaging in initiatives and agreements that aim to provide services tailored to the needs of all customer segments. The bank believes in the importance of collective efforts to support the state's plans for economic development and consistently works as a catalyst for national and strategic development, driven by its commitment to sustainability and continuous progress.

Mr. Yassin Mansour, Chairman and CEO of Palm Hills, commented on the significant financing: "This funding demonstrates banking institutions' confidence in Palm Hills and the banking sector's commitment to contributing to the development of integrated residential and commercial communities."

Palm Hills is eager to open new investment opportunities and boost Egyptian real estate market confidence to support sustainability and growth in this crucial sector. Our strategy focuses on developing projects that offer exceptional living spaces and high investment returns, strengthening our capacity to drive development in the Egyptian real estate market and bolster investor confidence in the long term.

The Badya City project, Egypt's first sustainable and smart city in West Cairo, has proven to be a sustainable urban development model, leveraging the latest artificial intelligence and smart infrastructure technologies.

We are excited about the potential progress of this promising project, which will contribute to our goals of promoting sustainability and innovation and realizing our vision of creating a comprehensive living environment that meets future needs.

Mr. Mohamed El-Etreby, CEO of the National Bank of Egypt, has stated that the alliance of national banks to finance significant projects enhances financial institutions' combined efforts to support the state's plans to advance the national economy. Banks are keen to play a vital role in supporting all activities contributing to the national economy and providing banking and financial services efficiently and technologically. Banks work to enhance the excellence of their services, maintain their long-term success, and participate effectively in services that meet the needs of their customers. Their work values and strategies always reflect their commitment to sustainable development and prosperity for Egypt.

The financing from the national banks supports the real estate sector in Egypt, aligning with the state's goal to expand and increase investments in this sector. This support significantly enhances infrastructure efficiency to meet the needs of companies seeking investment opportunities in the Egyptian market.

The real estate sector in Egypt is a strategic industry closely linked to many other economic activities and complementary services, such as the construction and contracting industry and the building materials sector. This sector contributes to developing the resources and capabilities of the national economy by localizing industry, increasing added value, boosting the national product, and creating more job opportunities for Egyptian youth. The real estate development sector plays a crucial role in achieving the state's goals for sustainable development and providing essential services to citizens.

Mr. Bahaa El Shafei, Deputy CEO of Banque du Caire, emphasized the significance of real estate development in achieving comprehensive development. He highlighted that such projects create job opportunities for young people and contribute to related industries. Banque du Caire was key in financing this project as the initial lead arranger, finance marketer, and debt service consumption account bank, leveraging its expertise in structured finance and syndicated loans. The financing process involved the cooperation of 8 banks in the Egyptian banking sector to support the "Badya" project, one of the largest investment projects in real estate development.

Mr. Amr El Shafei, CEO of Emirates NBD Egypt, commented, "This major financial alliance represents a fundamental step towards enhancing fruitful integration between the banking and real estate sectors in Egypt. Our support for the Badya City project is in line with our strategy to meet the vital financing needs of strategic projects and our belief in the pivotal role that the project will play in driving sustainable economic development in Egypt. It will create new job opportunities and improve the quality of life for citizens by providing integrated residential communities and innovative services."

Mr. Hesham Abbas, Executive Board Member and Head of Corporate and Institutional Finance at ADCB Egypt expressed satisfaction in being part of one of the largest syndicated financing deals in Egypt with a group of top banks for Palm Development Company, a subsidiary of Palm Hills. He emphasized the significance of this deal in the real estate investment sector. Mr. Abbas highlighted the bank's flexibility and ability to offer innovative financing solutions to support clients' projects and expansion plans, ultimately benefiting the Egyptian economy. He also noted that in 2024, there was a notable increase in ADCB Egypt's syndicated financing portfolio and the loans and facilities portfolio in general, aligning with the bank's strategy to establish a strong presence and expand in the Egyptian market.

In this context, Mr. Hazem Hegazy, CEO and Vice Chairman of Al Baraka Bank, stated, "This strategic banking cooperation between eight of the most important banks operating in the Egyptian banking sector and Palm Hills Company, one of the largest real estate developers in Egypt, reflects our commitment to driving economic growth. The "Badya" project is a pioneering investment model in the real estate sector, combining innovation and sustainability, providing new job opportunities, and enhancing urban infrastructure. Our participation in this financing comes within our strategy that includes empowering major companies by providing innovative financing solutions that support sustainable development plans in Egypt, following the principles of Islamic Sharia."

In the same context, Mr. Khaled El Salawy, CEO and Managing Director of NBK-Egypt, stated: "NBK-Egypt is firmly committed to supporting and financing all vital sectors in the Egyptian market. This is based on the bank's belief in combining all efforts to support the state's plans to advance the national economy and maximize the benefits offered to society. He stressed that the bank has a keen vision to finance economically and nationally feasible deals to achieve sustainable development and Egypt's Vision 2030. He also emphasized that NBK-Egypt has been keen since the start of its operations in the Egyptian banking market to continue implementing its integrated strategy and expansion plan. The plan aims to develop its portfolio of companies and provide credit facilities to corporate clients from various sectors. The bank will continue supporting major companies by providing multi-purpose financing services and solutions that meet their needs and enable them to achieve their operational goals fully. This is due to a local and global economic climate full of variables."

Mr. Khaled El Salawy, CEO and Managing Director of NBK-Egypt, commended the successful collaboration among the banks involved in this deal. He highlighted the proficient and expert completion of joint financing procedures, demonstrating the ongoing cooperation among the banks and the robust role of the Egyptian banking sector. This reflects its ability to provide liquidity to enhance financing for diverse development projects, thereby contributing to the national economy's development. He further explained that the bank's participation as the "arranger and lender" in this long-term joint financing is pivotal in bolstering the real estate sector and supporting the company's endeavors to execute its various projects and fulfill its expansion plans.

Mr. Hussein Refaei, CEO and Managing Director of the Industrial Development Bank stated that the bank's participation in this major financing is part of its strategy to support national projects that enhance economic growth and create new job opportunities. The bank is committed to supporting the real estate development sector, which is a fundamental pillar of the Egyptian economy and directly impacts many other service sectors. The "Badya" project is an important initiative that improves the quality of life and provides an integrated model for sustainable urban development. The bank is proud to provide this support alongside a strong banking alliance and looks forward to achieving more successes that benefit the national economy.