The European Bank for Reconstruction and Development (EBRD) is arranging a US$ 265 million financing package to support the expansion and modernisation of the hospitality operations of ADD Properties, a member of Sami Saad Holding, in Egypt. The EBRD has been mandated as the initial lead arranger (IMLA) and bookrunner, and is providing the largest facility, at US$ 127.5 million. The International Finance Corporation (IFC), acting as a mandated lead arranger (MLA) is extending a loan of US$ 60 million by way of the Mutual Reliance Framework.

Emirates NBD Egypt is acting as MLA, global facility agent and onshore account bank, providing US$ 40 million. DenizBank AG, a subsidiary of Emirates  NBD Group, is serving as the offshore security agent and offshore account bank. National Bank of Egypt, acting as MLA, local facility agent and onshore security agent, as well as the onshore account bank, is providing a US$ 37.5 million loan. EFG Hermes, an EFG Holding company, is acting as the sole financial advisor and bookrunner on the transaction.

The financing aims to strengthen ADD Properties’ capital structure ADD Properties – Member of Sami Saad Holding, support the continued growth and enhancement of its hospitality portfolio, and consolidate its asset value in a period of significant capital deployment, anchored by the development of a new Grand Hyatt hotel in West Cairo.

ADD Properties’ expansion reinforces Egypt’s national tourism strategy and enhances the hospitality offering in one of the country’s fastest-growing destinations, where cultural and leisure tourism are surging, driven by the opening of the Grand Egyptian Museum and ongoing regeneration of the Giza Plateau.

Vlaho Kojakovic, EBRD Director for Real Estate, said: “Egypt’s tourism sector has significant potential to drive investment, job creation and sustainable economic growth. This financing reflects the strength of the partnership between the EBRD and ADD Properties, and our shared ambition to support the long-term development of a more sustainable and competitive tourism sector in Egypt. By supporting ADD Properties’ continued growth and investment in high-quality hospitality infrastructure, including the new Grand Hyatt in West Cairo, we are helping to strengthen Egypt’s tourism offering while promoting higher standards in sustainability, skills and corporate governance. We look forward to building on this partnership as ADD Properties continues to grow and invest in Egypt’s tourism sector.”

The financing will be complemented by technical assistance to deliver inclusive, green and market-relevant training programmes for young women and men in Cairo and Hurghada, strengthening the supply of skilled labour in Egypt’s hospitality sector. Technical assistance will support improvements in corporate governance, with the implementation of a corporate governance action plan aimed at strengthening ADD Properties’ governance practices. The assistance will further support a portfolio-wide green transition, including the development of a high-performance hotel and the certification of existing assets to LEED “Silver” standards.