Palm Hills Developments And Sarwa Capital Announce Closing Of EGP261 Million Securitized Bonds
Palm Hills Developments ("PHD" or "the Company") and Sarwa Capitalhas successfully closed its latest issuance of Securitized Bonds in relation to EGP346 million receivables portfolio of 232 delivered units in the following projects: Palm Hills Katameya Extension, Palm Parks and Hacienda White 2.
Palm Hills will receive net proceeds of EGP261 million, after applying a discount rate of 14.83%, which is calculated based on the average return of the Bond’s three tranches, and after deducting various transaction related fees and commissions. Palm Hills intends to utilize the proceeds in pre-paying the Company’s existing debt.
Tarek Rahman, PHD’s CEO commented: “This milestone comes in line with the Company’s plans to deleverage its Balance Sheet via monetization of receivables program of up to c.EGP2.5 billion over 2-3 years, which already started since the beginning of 2017”.
Ayman El Sawy, Sarwa Promoting & Underwriting’s Managing Director commented: “We are pleased to close the second Securitization Bonds for Palm Hills Developments. The Bonds maintain the same high credit rating on the back of the strength and quality of the issue structure. We look forward to working closely with the Company as we return to market with follow-on tranches”
