ADD Properties signs $265 million syndicated financing for Giza hotel

ADD Properties, part of Sami Saad Holding, signed a $265 million syndicated financing agreement on 30 October, backed by the European Bank for Reconstruction and Development.

The financing involved the International Finance Corporation, Emirates NBD Egypt and the National Bank of Egypt, while EFG Holding acted as adviser.

The financing is allocated to the Grand Hyatt hotel project in Giza, which has 400 rooms and overlooks the Grand Egyptian Museum and the pyramids, and is also used to restructure the company's capital.

The financing combines support from international financing institutions and local banks, linking the hotel project's execution with reorganising the developer's financial position at the same time.

What do these terms mean?

Syndicated financing: A loan or financing facility provided by a group of banks and institutions together to fund a single project, instead of one lender bearing it alone.

European Bank for Reconstruction and Development: An international financial institution that provides financing for projects in a number of countries, including Egypt, and supports the private sector in carrying out large investments.

Capital restructuring: Reorganising a company's funding sources between debt and equity, to improve its ability to repay and ease the burden of obligations.