Cairo - Mubasher: Palm Hills Developments (PHD) on Wednesday announced closing its latest securitisation bond issue with Sarwa Capital Holding for Financial Investments.
The closed bonds are backed by the receivables portfolio of 670 delivered units in several of PHD’s projects, namely: Golf View, Golf Extensions, Palm Hills Katameya Extension (1&2), Hacienda Bay and Hacienda White 2, Palm Hills revealed in a statement.
After applying a 16.04% discount rate on the gross receivables portfolio of EGP 760 million ($43.47 million), the receivables portfolio registered EGP 609 million ($34.83 million).
The discount rate is calculated based on the average return of the bond's three tranches issued by Sarwa Capital.
Sarwa Promotion & Underwriting was the deal’s financial advisor, lead manager, and arranger, while Banque Misr and Arab African International Bank (AAIB) were the underwriters and joint arrangers of the issue.
“This latest and important issue comes in line with [PHD’s] plans to deleverage the balance sheet via monetisation of receivables program of up to EGP 5 billion, which started during 2017,” Palm Hills' chairman and CEO Yasseen Mansour said.
Sarwa Promotion & Underwriting issued bonds for total receivables of EGP 1.6 billion out of the EGP 5 billion programme, the Egyptian firm’s managing director Ayman El Sawy revealed.
At the end of Wednesday’s trading session, Palm Hills’ stock rose 2.18% to EGP 2.81, while Sarwa Capital’s stock inched up 0.32% to EGP 6.19.
