By – Eman Hamed
Palm Hills Developments (“PHD” or “the Company”), the leading real estate developer in Egypt, announce signing a medium-term loan agreement (“the Loan”) for EGP1.1 billion with Commercial International Bank Egypt (“CIB”). The facility will replace an existing syndicated medium-term loan previously granted by Arab African International Bank (“AAIB”) and other banks.
The Loan is segregated into Tranches A and B, with maturity of five and four years respectively, complemented by a grace period of five months. Tranche A will refinance Golf Views and Golf Extension projects by EGP828 million and EGP100 million due to other projects. While Tranche B will refinance the outstanding exposure of Palm Hills Katameya by EGP171 million.
PHD received a very competitive financing package, when compared to the terms and conditions of the existing syndicated medium-term loan, reflecting improvements in the Company’s credit risk rating.
Yasseen Mansour, PHD’s Chairman & Group CEO commented: “I am very pleased with the closing of said facility, which enables the Company to increase its financial flexibility by improving its credit terms, whilst strengthening its relationship with Egypt’s leading bank, the Commercial International Bank Egypt.
The competitive financing package is a strong testimony to PHD’s continuously improving credit rating and sound financial position. This move comes in line with our strategic direction to focus on optimization of leverage, reducing financing costs and the enhancement of our cash flow position”.