Palm Hills Developments (PHD) has announced closing its fifth and largest securitization bond, in a transaction backed by a receivables portfolio of EGP 1.5 bn, and handled by the Arab African International Bank (AIIB) and CI Capital Investment Banking (CIIB), Invest-Gate reports.
The move translates into net proceeds of EGP 1.25 bn, corresponding to 1,314 delivered residential units in PHD’s Golf Views, Golf Extension, Woodville, Palm Valley, Palm Parks, Village Gate, Hacienda Bay, Hacienda White 2, Capital Gardens, Palm Hills Katameya, as well as, Palm Hills Katameya Extensions 1 and 2 projects, according to the Egypt-based developer’s November 29 bourse filing.
The triple-tranche bond issuance carries maturities of 13, 36, and 61 months that received AA+, AA, and A ratings, respectively, from the credit rating agency Middle East Rating and Investors Service (MERIS), the statement noted.
Commenting on the news, PHD Chairman and CEO Yasseen Mansour confirmed, “The impact of the said transaction will positively impact the company’s financial statements in Q4 2020. We expect to engage in further securitization transactions in 2021 with gross receivables portfolio of c. EGP 2.5-3 bn.”
Mansour further stated, “We have securitized gross receivables worth EGP 3.6 bn since we started the securitization program back in 2016.”
In October 2019, PHD and Sarwa Capital had secured the fourth securitization bond issuance, backed by a receivables portfolio worth EGP 776 mn, bringing the former company’s securitized total gains to EGP 2.4 bn at the time, as highlighted in a previous EGX filing.
