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Wednesday, 21 December 2016

PHD signs agreements for its securitization program

Palm Hills Developments (PHD) announced signing agreements with Sarwa Capital, Arab African International Bank, and Banque Misr for its securitization program. The agreements will allow it to launch an EGP 404 mn securitization bond after receiving the necessary regulatory approvals from the Egyptian Financial Supervisory Authority. PHD says all the proceeds will be used to pre-paying company debt is it looks to deleverage its balance sheet via monetizing up to EGP 2.5 bn in receivables over 2-3 years. The bond will be offered to local financial institutions via private placement over three tranches with coupon rates ranging from 15.79% to 17.39%. “The Bond will be fully underwritten by Arab African International Bank and Banque Misr. Sarwa Capital, Arab African International Bank and Banque Misr will be issuing the Bond and promoting the subscription. Sarwa Capital will be acting as the transaction’s financial advisor. Arab Legal Consultants will be acting as the legal advisor for the securitization process, and Al Kamel Law will be acting as the legal advisor of PHD. Arab African International Bank will be acting as the sole custodian and PHD’s financial advisor.” Full details on the issuance can be found here.

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