CPA – Your Local Bank in Algeria

Real Estate Development

Who is it intended for?

Any natural or legal person who is legally registered in the trade register and authorised to carry out real estate development activities can apply, provided they can prove ownership of the land allocated for the project.

Financing amount:

Financing can cover up to 70% of the total project cost.

SCAR statement review is mandatory for any loan application of an amount equal to or greater than two million dinars and must be completed prior to processing.

Disbursement of the loan will be made upon presentation of work progress reports signed by the consultancy office overseeing the operation.

Loan duration:

The loan duration can be up to thirty-six (36) months.

Interest rate:

• Applied interest rate: 5% per year, variable, excluding taxes. Interim interest may be paid quarterly or on the due date, at the developer’s discretion.
• Subsidised interest rate: 4%, within the framework of real estate development operations involving the realisation of the public programme for which the developer holds duly signed specifications with the Directorate of Housing and Public Facilities.

The terms for granting a loan at the subsidised rate are as follows:

The real estate developer must meet the eligibility criteria set out in the standard specifications relating to the interest rate subsidy.

Required guarantee:

A first-rank mortgage on the land and constructions of the real estate development is required.

These are the documents that make up the credit file for a property development project:

1. The loan application must specify the requested amount and be justified and signed by the authorised person.

2. The OPI data sheet must be completed and signed by the client according to the template provided by the agency.

3. A copy of the decision granting authorisation to practise as a real estate developer.

4. A valid copy of the trade register authorising real estate development activity.

5. For LLCs and joint-stock companies, the company articles of association and powers of the manager authorising him/her to contract loans and transfer the company’s assets;

6. A statement of the developer's, manager's or company associate's assets;

7. Cleared fiscal and para-fiscal documents dated within the last three months;

8. Accounting documents (balance sheets and income statement tables) for operating companies for the past three closed fiscal years;

9. Provisional balance sheets and income statement tables (IST) for the duration of the requested loan.

10. A copy of the property deed for the land, registered in the name of the applicant and duly recorded and published.

11. A valid regulatory construction permit (less than three years old) in the name of the applicant.

12. A detailed techno-economic study, including a technical sheet of the operation.

13. Duly signed architectural plans from the Directorate of Urban Planning, Construction and Housing.

14. A bill of quantities, cost estimates or execution contract (if applicable).

15. A copy of the agreement with the CTC inspection body.

16. Business group data sheet for affiliated companies.

17. An appraisal of the property proposed as a mortgage, issued by an accredited expert firm.

18. Authorisation to access the Bank of Algeria's risk database;

19. A copy of the certificate of registration in the National Register of Real Estate Developers.

IMPORTANT!

The Bank has set a deadline of 45 days for processing loan applications, starting from the date of receipt of the complete application file.

• Investment Loans
  • Loan applications must be submitted on company letterhead and include the following information: Company denomination - Company purpose - Share capital for legal persons - Contact details (address, email, phone number, etc.) NIF (Fiscal Identification Number), NIS (Statistical Identification Number) and Trade Register number.
• • The application must bear the company stamp, be dated and signed by the authorised person, specify the requested amount and provide justification. It must also include details of the requested loans, the amount and the offered guarantees covering the loan, as well as the requested deferment duration.
• • This application must clearly state the type, amount, duration and purpose of the loans requested, as well as the personal and real guarantees offered.

• A copy of the Trade Register and/or a copy of the presented authorisation, if applicable;

• A copy of the articles of association;

• A copy of the Fiscal Identification Number (NIF), Statistical Identification Number (NIS) and National Identification Number (NIN);

• A decision designating the individuals authorised to operate the account and enter into financial commitments. This must be provided on company letterhead and signed by someone with full authority to represent the company.

• A Board of Directors' resolution authorising the investment for public economic enterprises.

• Provisional balance sheets and income statements (TCR) for the duration of the loan;

• A provisional financing plan for the loan period;

• Estimated and quantitative quotes for works already completed or to be completed;

• Pro forma invoice or final contract for the equipment to be acquired;

• Statement of assets of the shareholders;

• The granting decision for fiscal and social security benefits issued by the Algerian Investment Promotion Agency (AAPI) (formerly ANDI);

• Cleared fiscal and para-fiscal documents dated within the last three (3) months for businesses already in operation and a declaration of existence for those not yet active;

• The concession deed or property deed/land register for the production unit and head office;

• A copy of the building permit and certificate of conformity;

• Assessment of the unit and assets taken or proposed as mortgage by a firm accredited by a CPA;

• A detailed techno-economic study (product designation, detailed and quantified market analysis, commercial analysis, technical analysis and analysis of the components of the planned investment);

• Descriptive and estimated statement of civil engineering and building works completed and remaining to be done, issued by a licensed architectural firm;

• All supporting documents for expenses already incurred as part of the project.

• A valid construction permit;

• Site layout and location plan for the upcoming project;

• Architectural and structural framework plans;

• For quarry projects: A geological survey of the site, exploitation and/or concession authorisation issued by the relevant authority, mining title;

• A quality analysis study of the deposit for construction material production projects;

• Authorisations or accreditations from the relevant authority for activities in the tourism or healthcare sectors;

• CTC agreement for the infrastructure that will host the investment projects.

In addition to the documents required above, construction and public works companies must also provide the following:

• An updated project data sheet for each contract;

• A summary statement of ongoing projects, including contract amounts, project managers, remaining work, execution deadlines and remaining time;

• Cumulative financing plan for contracts;

• A list of execution equipment;

• Company qualification certificate, issued by the relevant authorities.

OPERATING LOAN

1. The loan application must be submitted on company letterhead and include the following:

• Company denomination
• Company purpose
• Share capital for legal persons
• Contact details (address, email, phone number, etc.)
• NIF (Fiscal Identification Number), NIS (Statistical Identification Number), and Trade Register number

The application must bear the company stamp, be dated and signed by the authorised person, specify the requested amount and provide justification. It must also include details of the requested loans (amount and offered guarantees) to cover the loans requested.

The import program must include:

• Suppliers (corporate name, country, etc.)
• Purpose of import (type and origin)
• Amount

2. The final fiscal balance sheet and annexes for the last fiscal year, along with the auditor's report, are required for companies (LLCs and joint stock companies with an annual turnover exceeding ten million DZD).

3. Provisional balance sheets, income statement tables (IST) and annexes (including

CFS: Cash Flow Statement);

4. A provisional operating budget and cash flow plan for the fiscal year, including detailed inventory statements and receivables from major clients by maturity;

5. An accounting situation dated within the last three months for files submitted during the second semester;

6. A recent tax clearance certificate and tax return for the last fiscal year;

7. A recent, cleared para-fiscal certificate;

8. A certified copy of the property titles belonging to the company and the leasing agreement.

9. Company presentation note (including a data sheet on the business group for affiliated companies), qualifications of associates and managers.

10. Detailed workload plan per client and per product;

11. Import programme and financing plan (for industrial or commercial companies);

12. Articles of Association and a valid Trade Register (in case of changes between fiscal years);

13. Certificate of Conformity for companies engaged in import activities;

14. Appraisal or reappraisal of mortgaged assets or those proposed as a guarantee (reappraisals are carried out every three years).

15. Official legal announcements and publication of financial statements in the Gazette;

16. Borrowing and guarantee powers;

17. Creation and amendment of articles of association.

IMPORT ACTIVITY:

1. Certificate of conformity for engaging in import activities (for resale in the same condition);

2. Accreditation issued by the Ministry of Health for importing and distributing consumable products and medical-surgical equipment.
3. Authorisation from the Ministry of Energy and Mines for the acquisition of materials, hazardous chemical products and gas containers.
4. A regulatory certificate issued by the Ministry of the Pharmaceutical Industry as part of the activity of importing pharmaceutical products/medical equipment.
5. Authorisation to import CKD kits for the import of household and electrical appliances.

[Slider B – In the case of a new domiciliation]

In addition to the above documents, the file must include the following:

1.       Balance sheets and income statement tables (IST) for the last three fiscal years, as well as the auditor's report (for LLCs and JSCs with a turnover greater than ten million DZD).

2.       Closing balance sheets;

3.       Company articles of association;

4.       Valid Trade Register;

5.       A copy of the fiscal, statistical and national identification numbers of the project promoters (associates/majority shareholders).

6.       Any specific operating authorisation issued by the relevant authorities.

7.       Authorisation to consult the Bank of Algeria's risk database for the legal entity (natural person, LLC, SMLLC or JSC) and the project promoters (associates/majority shareholders).

[Slider C – Creation of a new company (new domiciliation/new relation) ]

1.  A loan application that specifies the requested amount, is justified, dated and signed by the authorised person, and specifies the requested loans, amounts and proposed guarantee that covers the requested loan.

2.  Opening balance sheet.

3.  Provisional balance sheets, income statement tables (IST) and annexes;

4.  The provisional operating budget and cash flow plan for the fiscal year.

5.  A certificate of declaration of existence issued by the tax services.

6.  Certificate of affiliation with social security funds.

7.  A copy of the fiscal and statistical identification numbers.

8.  A certified copy of the property titles owned by the company and the leasing agreement.

9.  A company presentation note including an information sheet on the business group for affiliated companies and the qualifications of associates and managers.

10. The company's articles of association;

11. Valid Trade Register;

12. Authorisation to consult the Bank of Algeria's risk database;

13. A certificate of conformity for companies engaged in import activities.

14. Any specific operating authorisation issued by the competent authorities;

15. A civil engineering plan, stamped and approved by the CTC.

16. An appraisal or reappraisal of mortgaged assets or assets proposed as a guarantee (reappraisal frequency: every three years). The reappraisal must be carried out by an expert who is approved and accredited by the CPA.

17. Official Legal Announcements Gazette publication of financial statements;

18. Borrowing and guarantee powers;

19. Creation and amendment of articles of association. [/sliders]