|12 June, 2019

Orascom Development Egypt (ODE) has successfully signed debt rescheduling package with the Egyptian banks

ODE’s lenders agreed to reduce the interest rate margin on the foreign currency debt by 100 bps.

Cairo: – Orascom Development Egypt (ODE) has signed EGP 3.8 billion debt rescheduling package, strengthening its balance sheet and creating more flexibility in advancing its projects.

The transaction involves the immediate cash payment of EGP 325 million out of a total EGP 650 million, with the remaining to be paid by end of June 2019. ODE’s lenders agreed to reduce the interest rate margin on the foreign currency debt by 100 bps. This will reduce our weighted average cost of debt from 10.5% to 9.3% and result in annual savings of EGP 70 million in interest payments for 2019 and a total of EGP 320 million over the 6 years period (2019-2024).

The rescheduling terms and conditions also entails amending the remaining debt principal repayment schedule to better match the cash flow generation profile of ODE and alleviates the pressure without changing the final maturities of the loans by sculpting a “ballooned” structure whereby roughly 50% of the total debt principal is repaid in the final years.

-Ends-

About Orascom Development Egypt (ODE):

Orascom Development Egypt (ODE) is the largest subsidiary of Orascom Development Holding AG (ODH). ODE is an integrated developer of resort towns in Egypt, with a vertically-integrated business model involving the development of residential units, hotels, and recreational facilities such as golf courses, town centers, and marinas, in addition to supporting infrastructure, such as hospitals, schools, and utilities. ODE currently owns a land bank of 49.9 million square meter and 24 hotels with a total of 4,918 rooms within four operating destinations. El Gouna, on the Egyptian Red Sea Coast in Hurghada, Taba Heights, on the Sinai Peninsula, Makadi in Hurghada and Byoum in Fayoum.

Contact for Investors:
Sara El Gawahergy
Head of Investor Relations and Strategic Project Management
Tel: +202 246 18961
Tel: +20100 218 5651 
Email: ir@orascomdh.com 

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