Palm Hills Developments (PHD) has signed a loan agreement of EGP 505 mn with Ahli United Bank Egypt (AUB), Invest-Gate reports.

The facility will replace the existing medium-term loan previously granted by the Arab African International Bank (AAIB), according to a press statement on January 21.

The new loan will refinance the outstanding balance of the existing facility on the Palm Parks project, in addition to funding the project’s updated investment cost and remaining construction works to speed up the project’s completion, the company said.

The listed developer received competitive financing schemes from AUB, compared to the terms and conditions of the existing credit facility.

PHD’s Chairman and Group CEO Yasseen Mansour commented, “I am very pleased with this refinancing agreement, which is our second transaction as part of the company’s debt optimization program.”

“With these agreements, PHD will further solidify its financial position and reduce the debt burden by improving the current credit terms, capitalizing on the performance and maturity of some of our projects. We reiterate that this move comes in line with our strategic direction towards leverage optimization, reducing financing costs and cash flow enhancements,” he added.

In December 2019, PHD signed on December 18 a deal with the Commercial International Bank Egypt (CIB) to secure EGP 1.1 bn medium-term loan facility.