Cairo - Mubasher: Palm Hills Developments signed an agreement with a consortium composed of Sawra Capital, Arab African International Bank and Banque in relation to its receivables securitization program.
Per this agreement, the consortium will launch Palm Hills ‘Securitization bond for a total consideration of EGP404 million.
The agreement will be effective after securing the necessary regulatory approvals from the Egyptian Financial Supervisory Authority (EFSA), noting that the full proceeds will be directed towards pre-paying the company’s existing debt.
The bonds will be offered to local financial institutions via private placement over three tranches, where the first tranche will amount to EGP 122 million at a fixed coupon rate of 15.79% per annum, with a credit rating of AA+ (sf) and maturity in January 2018 – non callable.
The second tranche will amount to EGP185 million at a fixed coupon rate of 16.69% per annum,
with a credit rating of AA (sf) and maturity in January 2020 – callable, while the third tranche will amount to EGP97 million at a fixed coupon rate of 17.39% per annum, with a credit rating of A (sf), and maturity in December 2021 – callable.
The Bond will be issued in relation to receivables relating to 465 delivered units in each of this projects;Golf Views, Golf Extension, Palm Hills Katameya, Palm Hills Katameya Extension, Hacienda Bay and Hacienda White.
