Orascom Development Egypt (ODE) has sealed a medium-term loan deal worth USD 265 mn (EGP 4.1 bn) to refinance outstanding debt and bankroll growth plans, Invest-Gate reports.
The seven-year-tenor loan carries a 2.5-year grace period to give some breathing room amid the ongoing COVID-19 crisis. ODE will allocate USD 215 mn (EGP 3.4 bn) to finance outstanding balances, according to the Egypt-based developer’s bourse filing on November 23.
The remaining USD 50 mn (EGP 782.5 mn) will fund expansion plans over a two-year period, including planned capital expenditures (capex) for the addition of new rooms and renovation of ODE’s hotels.
According to the statement, the Commercial International Bank – Egypt (CIB), Banque Misr, Banque du Caire, and HSBC acted as mandated lead arrangers, whereas EFG Hermes served as the transaction’s sole financial advisor, lead manager, and global coordinator.
During the first nine months of 2020, ODE registered EGP 357.4 mn in net profit, down from EGP 501.2 mn in the prior-year period, including minority shareholders’ rights, as highlighted in the company’s latest financial statement.