Jun 07, 2021

PHD Successfully Closes Its Sixth Securitization Bond Issuance For A Gross Receivables Portfolio Of EGP1.2 Billion In Cooperation With Sarwa Capital

Palm Hills Developments ("PHD" or "the Company"), a leading real estate developer in Egypt, announces in cooperation with Sarwa Capital, a subsidiary of Contact Financial Holding ("Sarwa"), the successful closing of its sixth securitization bond issuance ("the Bond") backed by a receivables portfolio of approximately EGP1.2 billion, corresponding to 355 handed over residential units. The Bond was issued in four tranches with ratings of AA+, AA, A, A-.

Sarwa Promotion & Underwriting acted as the Financial Advisor, Lead Manager and Arranger of the transaction. The issuance was fully underwritten and co-arranged by several leading banks as follows:

Misr Capital, Banque Misr, Arab African International Bank and Ahli United Bank. Ali El Din Weshahi (ALC) acted as the legal advisor for the issuance. Misr Capital Securities Brokerage Company also played for the first time the role of a trading intermediary in the secondary market with the aim of facilitating the entry of individual investors to invest in securitization bonds.

Yasseen Mansour, PHD’s Executive Chairman commented: “I am very pleased with the successful closing of our sixth securitization transaction. We have securitized gross receivables of approximately EGP5.1 billion since we started the securitization program back in 2016. The securitization program had helped us tremendously in expediting our construction schedule ahead of plans across our projects’ portfolio, leading to early deliveries across almost all projects”.

Ayman El Sawy, Contact Financial’s Group CFO commented: “Our long-standing partnership with Palm Hills Developments has led to many successful issuances, as we continuously strive to deliver efficient and innovative funding structures for our partners. This latest issue has a unique structure with pricing linked to multiple benchmarks, enabling access to wider range of investors”.

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