Egypt’s property developer Palm Hills Developments (PHD) signed on December 18 a deal with the Commercial International Bank Egypt (CIB) to secure EGP 1.1 bn medium-term loan facility, Invest-Gate reports.

The facility, which replaces an existing syndicated medium-term loan previously granted by several banks such as the Arab African International Bank (AAIB), will be extended over two tranches, with no more than four to five years to maturity, complemented by a grace period of five months, according to the company’s recent press release.

During the signing ceremony, which took place at Four Seasons First Residence Cairo in Giza, PHD revealed that the first tranche is aimed at extending EGP 100 mn in funding for its various developments nationwide, with an additional EGP 828 mn directed toward financing its west Cairo projects, namely Golf Views and Golf Extension.

“Meanwhile, Tranche B will refinance the outstanding exposure of Palm Hills Katameya by EGP 171 mn,” the developer further stated, noting, “PHD received a very competitive financing package when compared to the terms and conditions of the existing syndicated medium-term loan, reflecting improvements in the company’s credit risk rating.”

In its statement, PHD Chairman and CEO Yasseen Mansour remarked, “I am very pleased with the closing of said facility, which enables the company to increase its financial flexibility by improving its credit terms, whilst strengthening its relationship with Egypt’s leading bank, or CIB.”

“This move comes in line with our strategic direction to focus on optimization of leverage, reduce financing costs, and enhance our cash-flow position,” Mansour was quoted as saying.