Paragon leans on green credentials to secure financing

Real estate player Paragon Developments is in “advanced negotiations” with an un-named state bank to secure EGP 400 mn in green financing, according to a company statement(pdf). The move follows Paragon’s Paragon.2 Financial District in the New Capital attaining a LEED Gold certification.

Why it matters: This story isn’t just about sustainability, it’s about the cost of capital. With interest rates still relatively high, companies are using their green credentials to bypass more expensive lending and open up new pools of liquidity. If Paragon manages to secure the funding, it’s a sign that developers that prioritize sustainability and get the necessary certifications can access cheaper debt and access to funds that other developers can’t.

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EBRD lends Hassan Allam USD 25 mn

Hassan Allam Holding has secured a USD 25 mn loan from the European Bank for Reconstruction and Development, according to the lender’s website. The funds will support Hassan Allam Construction’s capex and investment in new machinery.

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