Egyptian universal bank EFG Hermes said Wednesday that its leasing and factoring arm has signed a $39.2 million (EGP 750 million) sale and leaseback agreement with real estate developer Marakez to refinance the Mall of Arabia in Sixth of October.
The bank said in a statement that the transaction is part of a wider $117.6 billion (EGP 2.25 billion) financing package arranged by EFG Hermes’ Investment Banking division and EFG Hermes Corp-Solutions for MARAKEZ.
“This latest funding marks as a steppingstone towards tapping the local debt capital market in the near future through prospective financing that capitalizes on the strong asset profile and robust cash flow generation of MARAKEZ’s landmark property, Mall of Arabia,” Maged El Ayouti, MD and Deputy Head of EFG Hermes’ Investment Banking division said in the statement.
Last month, EFG Hermes concluded an EGP 1.5 billion financing arranged for ODE’s O-West and an EGP 425 million securitized bond issuance for Pioneers Properties for Urban Development that were both concluded last month.
The sale and leaseback deal is the latest for EFG Corp-Solutions after the company signed an EGP 600 million agreement with LMD in March, an EGP 750 million deal with MNHD in December 2021 and an EGP 750 million with Misr Italia last October.
