Egypt: Qalaa Holdings settles over $268mln in debt with 5 banks

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Cairo – Qalaa Holdings has signed an agreement to settle debt with five banks to settle around EGP 13.45 billion in debt.

The first agreement was signed with Banque Misr, Banque du Caire, Arab African International Bank, and Al Ahli Bank of Kuwait to settle EGP 4.54 billion in debt, according to a bourse filing.

The deal includes selling 239.12 million shares of Qalaa’s subsidiary TAQA Arabia, representing 17.68% of its total shares.

Qalaa retains the right to repurchase the sold stake in TAQA shares within 5 years, and the banks have the right to resell those shares to the company in the sixth year.

The deal also includes a registered 60,127 square metres of land plot overlooking the Nile in Tibeen area and compensations for variations in the exchange rate and stock prices.

Furthermore, Qalaa Holdings and related companies signed an agreement with Arab International Bank (AIB) to settle and restructure $184 million (EGP 8.90 billion) debt over instalments between 2024 and 2033.

In February 2024, National Development and Trade (NDT), a subsidiary of Qalaa Holdings, inked agreements with three banks to settle a total debt of EGP 1.44 billion.

Qalaa Holdings reported consolidated net profits of EGP 7.09 billion in the first nine months (9M) of 2023, down from EGP 13.05 billion a year earlier.