More companies raising equity to retire debt: Mall of Egypt owner Majid Al Futtaim (MAF) Group has notified banks it is looking to begin the process to repay EGP 3 bn in loans ahead of schedule, Al Mal reports. MAF obtained the funding in 2014 from a consortium of 11 banks led by Banque Misr and National Bank of Egypt to cover 85% of Mall of Egypt’s development cost, with the first installment set to be repaid in early next year and the rest over six years. The central bank has raised interest rates by 700 bps since then. MAF will be looking to repay the loan either using funding from its parent company or from the proceeds of a capital increase.

… By Al Mal’s count, five companies are now in the process of repaying loans ahead of schedule to avoid the current environment of high interest rates. Besides MAF, the paper notes that Cleopatra Hospitals Group is repaying EGP 120 mn ahead of schedule. Sinai Cement is looking to retire EGP 564 mn in debt using the proceeds of a capital increase. Misr Cement is also raising EGP 301.22 mn in capital to repay borrowing and fund expansions. Kafr El Zayat Pesticides and Chemicals is also following suit, with the intention to raise EGP 40 mn in capital to reduce its borrowing.