Cairo:The European Bank for Reconstruction and Development (EBRD) has organized a substantial $265 million financing package aimed at expanding and modernizing the hospitality operations of ADD Properties, a subsidiary of Sami Saad Holding, in Egypt.

According to State Information Service Egypt, the EBRD has assumed the role of initial lead arranger and bookrunner, contributing the largest portion of the financing with a $127.5 million facility. Additionally, the International Finance Corporation (IFC) is participating as a mandated lead arranger, providing a $60 million loan under the Mutual Reliance Framework.

Emirates NBD Egypt is also involved as a mandated lead arranger, global facility agent, and onshore account bank, contributing $40 million. Meanwhile, DenizBank AG, an Emirates NBD Group subsidiary, is acting as the offshore security agent and offshore account bank. The National Bank of Egypt is providing a $37.5 million loan and serves as a mandated lead arranger, local facility agent, and onshore security agent.

EFG Hermes, part of EFG Holding, is facilitating the transaction as the sole financial advisor and bookrunner. The funding seeks to bolster ADD Properties' capital structure and enhance its hospitality portfolio, including the development of a new Grand Hyatt hotel in West Cairo.

The expansion of ADD Properties aligns with Egypt's national tourism strategy, enhancing the hospitality offerings in burgeoning destinations, spurred by attractions like the Grand Egyptian Museum and the rejuvenation of the Giza Plateau. The investment is expected to support local job creation, sustainable economic growth, and higher standards in sustainability and corporate governance within Egypt’s tourism sector.