SODIC seals EGP 600 mn financing agreement with Ahli United Bank
SODIC subsidiary to borrow EGP 600 mn from Ahli United Bank: Ahli United Bank has agreed to provide SODIC subsidiary Six of October For Development & Real Estate Projects (SOREAL) with a EGP 600 mn discounting facility, enabling the real estate company to borrow against future repayments from its East Cairo project, Eastown Residences, according to a statement (pdf) yesterday.
Why go through with it: “This agreement comes in line with SODIC’s continuous efforts to diversify our funding sources to enable growth and support ongoing operations while maintaining the strength and liquidity of our balance sheet and financial position,” SODIC’s CFO Omar Elhamawy said.
Account receivables financing: A primer. Accounts receivable financing is a short-term funding method that allows companies to receive early payment of future income. It can come in handy when there’s a timing mismatch between the cash inflows and outflows of a company, giving it access to early payments.