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Palm Hills Developments commence monetization of receivables program including the issuance of Securitized Bonds by up to EGP1 billion
Cairo/London, October 9, 2016: Palm Hills Developments ("PHD" or "the Company") commence regulatory and technical procedures related to the issuance of Securitized Bonds ("the Bonds") by up to EGP1 billion, as part of the Company's plans to deleverage its Balance Sheet via monetizing receivables of up to c.EGP2.5 billion over 2-3 years period.
The Company is currently processing necessary procedures including obtaining all required regulatory approvals and the Bonds' Credit Rating. The first transaction is foreseen to close during the last quarter of 2016 for a total consideration of c.EGP350-450 million in receivables relating to delivered units in some of the Company's projects, with the balance to be issued during the course of FY2017/2018. The Bonds will have an expected tenor of 5 years, and will mainly target money market funds, local banks and insurance companies. The transaction proceeds will be mainly utilized in refinancing existing debt, in the form of non-recourse off Balance Sheet financing. The process is being managed by Sarwa Capital.
About Palm Hills Developments
Palm Hills Developments, a leading real estate developer in Egypt, is a joint stock company established in 1997. Palm Hills builds integrated communities and has one of the most diversified land bank portfolios, spreading over 27 million square meters ("sqm") in Egypt, including 5 million sqm in Saudi Arabia. The Company's product offerings include primary homes on both West Cairo and East Cairo, as well as secondary homes by the Mediterranean Sea, North Coast.
As at end of 2Q2016, PHD delivered more than 5,130 units within its developments, including more than 1,500 units in 11 completed projects. Today, PHD has 14 projects under development, 6 projects in West Cairo, 6 projects in East Cairo and 2 projects in North Coast, translating into a sales backlog exceeding EGP9.1 billion. PHD is one of the most liquid and actively traded stocks on the Egyptian Stock Exchange, and is traded under the symbol "PHDC.CA".
The Company has a GDR listing on the London Stock Exchange, and is traded under the symbol "PHDC.LI".
For more information, please visit: www.palmhillsdevelopments.com
Investor Relations Contacts
Ahmed Nour El-Din Hassan
Tel +202 35351200, Extension 1503
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