Cairo – Mubasher: Palm Hills Development Co and Sarwa Capital have concluded the fourth securitisation bond at a value of EGP 776 million, backed by a receivables portfolio that includes 582 delivered units.

“The three tranches received ratings of AA+, AA, and A by Middle East Ratings and Investors Service (MERIS),” according to a statement on Tuesday.

The handed-over residential units are located in the following projects: Golf Views, Golf Extension, Woodville, Cascade, Palm Valley, Palm Parks, Village Gate, Hacienda Bay, Hacienda White 2, Palm Hills Katameya, and Palm Hills Katameya Extension, the statement showed.

The net proceeds of the deal will be predominantly used to finance the settlement of current debt.

This bond will increase Palm Hills’ total issuances to EGP 2.4 billion to be the “largest pool in the market,” the statement noted.

Palm Hills’ CEO and managing director Yasseen Mansour expects “further securitisation transactions in 2020 with gross receivables portfolio of up to c. EGP 1.5 billion, which will be mostly directed towards debt settlement.”

The real estate developer is also in talks with several local and foreign financial institutions to obtain a long-term funding between EGP 1.5 billion and EGP 2 billion to finance Badya project, he added.

Sarwa Promotion & Underwriting served as structuring advisor, lead manager and arranger of the deal and the issuance was underwritten and co-arranged by Arab African International Bank (AAIB), Banque Misr, and Ahli United Bank.

In addition, Arab Legal Consultants served as legal advisors for the deal.

Source: Mubasher

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