Egypt’s Palm Hills Developments uncovered on March 6 closing its latest securitization bond issue with Sarwa Capital Holding for Financial Investments, backed by receivables portfolio of EGP 760 mn in some of the former’s projects, Invest-Gate reports.

The receivables portfolios are related to 670 delivered units in several of Palm Hills’ Egypt-based projects, namely Golf View, Golf Extensions, Palm Hills Katameya Extension (1 and 2), Hacienda Bay, and Hacienda White 2, according to a company’s recent statement.

In its statement, Palm Hills noted that after the application of 16.04% discount rate on the gross receivables portfolio of EGP 760 mn, the receivables portfolio recorded EGP 609 mn – calculated based on the average return of the bond’s three tranches issued by Sarwa Capital.

Sarwa Promotion and Underwriting was the deal’s financial advisor, lead manager, and arranger, while Banque Misr and Arab African International Bank (AAIB) were the underwriters and joint arrangers of the issue, the developer added.

Commenting on the bond issue, Palm Hills’ Chairman and CEO Yasseen Mansour said, “This latest and important issue comes in line with our plans to deleverage the balance sheet via monetization of receivables program of up to EGP 5 bn, which started during 2017.”

In addition, Managing Director of Sarwa Promotion and Underwriting Ayman El Sawy stated, “In total to date, we have issued bonds for gross receivables of EGP 1.6 bn out of the EGP 5 bn program. We look forward to continuing the program with subsequent issues.”