The United Bank contributes to the Social Housing fund and Real Estate Finance syndication along with the National Bank of Egypt, Misr Bank, and eight more banks

07/11/2024

Syndication with 50 billion L.E.

The United Bank contributes to the Social Housing fund and Real Estate Finance syndication along with the National Bank of Egypt, Misr Bank, and eight more banks

Cairo: 7th of November 2024

In the framework of the presidential initiative “Housing for all Egyptians”, The United Bank participated with the National Bank of Egypt, Misr Bank, and eight other banks in a syndication of 50 billion L.E. for the Social Housing Fund and Real Estate Finance, as an underwriter of coverage. Aiming to finance social housing projects for low and limited- income.

Signature ceremony took place in the presence of: Ashraf El Kady- The United Bank Chief Executive Officer and Managing Director, Nevine Kashmiry- Deputy Managing Director for Business Sector and an Executive Board member, Alber Nassan- Head of syndication Finance, along with Mohamed El Etreby- President of National Bank of Egypt, and Hesham Okasha- President of Misr Bank attended the ceremony. Along with a constellation of banks chairpersons: Bahaa El Shafee- Vice President of Banque de Caire, Hassan Ghanem- CEO and Managing Director of Development and Housing Bank. Moreover, Amr El Ganiny- Executive vice President and Managing Director of CIB, Tamer Waheed- Vice President and Managing Director of Arab African International Bank, Mohamed Beder – CEO of National Qatar Bank, Tamer Saif- CEO and Managing Director of Commercial NXT Bank, Hussein Refay- Chairman and Managing Director of Industrial development Bank. Furthermore, Eman Abou Zaid- General Manager of Credit Sector in MID Bank, and Mai Abdel Hamid- the President of the Fund.

Mai Abdel Hamid- President of the Social Housing Fund and Real Estate Finance, expressed her happiness regarding this protocol signature. The thing that will play a vital role in supporting the fund in its claim to provide suitable housing for the low and limited- income citizens.

She stated that this protocol contributes to completing the finance for 304106 housing units. In addition to, establishing 30 thousand eco- friendly housing units in the framework of “green architecture” initiative. 

She clarified that it is planned to withdraw an amount of 20 billion L.E. from the current fiscal year budget. Ministry of Finance inserted an amount of 3.2 billion L.E. from the current fiscal year budget for paying interest of the withdrawn amount within allocations III- interests. In addition to, an amount of 5.5 billion L.E. within allocations V- support and provide representing the amount of compensation paid by finance institutions to support a number of around 299 thousand limited- income citizens, who previously enjoyed mortgage in the past years in the framework of social protection programs.

Abdel Hamid added that the fund is currently collaborating with 30 funding bodies, by 22 banks and 8 mortgage companies. Instead of just four banks at the beginning of the project. Around 65% of the program beneficiaries were dealing with banks for the first time in their lives. Which clarifies the vital important role played by the fund for the financial inclusion initiative.

She stated that the fund is about to launch a new announcement for low and medium- income citizens in the framework of the presidential initiative “Housing for all Egyptians”. The new launch will include around 80 thousand units, in two ways of submission, either immediate one or within 3 years. The new launch will cover most of the governorates and the new cities all over the Republic.

Commenting after his participation in the signature ceremony with a constellation of the 11 Egyptian banks, Ashraf El Kady- The United Bank CEO and Managing Director stated that the bank participation is out of its absolute belief of the importance of the role played by the fund in accomplishing the goals of sustainable development and social peace.

He stated that UB is ranking the seventh among banks that provide mortgage services according to the limited- income housing initiative, with funded amount of 1.994 billion L.E. as per data issued from the Social Housing Fund at the end of September 2024. 

Nevine Kashmiry- Deputy of Managing Director for Business Sector assured that UB has allocated 2.6% of the total finance directed to the limited- housing mortgage. It ranks the seventh among the banks providing mortgage with a number of 14.502 limited- income clients.

Alber Nassan- Head of syndication Finance, expressed his happiness with UB participation in this finance that works along with the efforts spared by the Republic to support social housing.

It is worth mentioning that the finance tenor is 6 years. The banks share of this finance is 9.5 billion L.E. for each of NBE, and MB. 7 billion L.E. for Banque de Caire, 2 billion L.E. for Development and Housing Bank, 4.775 billion L.E for CIB, QNB, AAIB, 4.875 for Nxt Bank, 1.4 billion L.E. for MID Bank, 1.1 billion L.E. for IDB, and 0.3 billion L.E. for UB.

End.