Banque Misr has arranged a long-term EGP 1.5bn loan to partially finance Damietta Furniture City project’s investment cost in cooperation with NI Capital, the financial advisor for the project.
The project aims to establish an integrated city for the furniture industry in Damietta Governorate on an area of 331 feddans.
It will include every furniture-related crafts, small industries, medium industries and complementary industries, at an investment cost of EGP 3.08bn.
Damietta Furniture City Project is expected to provide plentiful opportunities for local manufacturers and small- and medium-sized industries to penetrate global markets and develop furniture industry employees.
Akef El-Maghraby, Vice Chairperson at Banque Misr, stressed the bank’s desire to provide the necessary funds for major national projects that enhance state capabilities to achieve and increase local production.
He added that the loan arrangement comes as an affirmation of the bank’s role for effective participation in Egypt’s economic and industrial development.
Banque Misr has thrown its support behind the local economy and small- and medium-sized industries, to help advance development and support the Egyptian economy in various fields. This is in line with the state’s plan to attract investments to develop the local industry and increase exports.
Banque Misr is marketing a portion of the financing, targeting the participation of several banks operating in Egypt’s banking sector.
Osama Saleh, Chairperson of the Damietta City Furniture Company, said the project is an integrated national development project.
Saleh added that the project is expected to increase Egypt’s furniture exports three- or fourfold in addition to providing about 100,000 direct and indirect job opportunities.
Mohamed Metwally, the Managing Director and CEO of NI Capital, said, “We are proud of our role as the financial advisor to Damietta City Furniture Company in arranging this loan to pay the cost of building the infrastructure and workshops.”
Metwally added, “This activates the goals for which the company was established in the framework of the state’s efforts to support the furniture industry in preserving and creating job opportunities for the people of Damietta governorate”.
The Damietta City Furniture Company was established in 2016, and its paid-up capital currently stands at EGP 1.3bn.
The project includes 1,400 workshops for small factories and industrial lands with a total area of 590,000 sqm. This has allowed for the establishment of over 200 large factories, in addition to a large-scale shopping mall specialised in furniture.