Palm Hills Developments (PHD) has inked an EGP 365 mn medium-term loan agreement with Arab African International Bank (AAIB) and Banque Misr to fund work at the former’s North Coast project, or Hacienda Bay, Invest-Gate reports.

Under the deal, the syndicated credit facility will partially finance the investment value of Hacienda Bay, one of PHD’s developments on the North Coast, including construction, infrastructure, and administrative costs, according to the company’s bourse filing on June 25.

PHD has fully self-financed Hacienda Bay’s former loan, signing the new deal with better financing terms, while also saving the company about 2% in financing expenses when compared to the previous facility, the statement noted.

In early June, the Egypt-based developer agreed on a co-development contract with Al Shorouk for Touristic Developments for a mixed-use community in Ain Sokhna, Red Sea, under a revenue-sharing scheme, with investments valued at EGP 3.5 bn, PHD revealed in an earlier statement.

Accordingly, PHD will undertake construction, development, infrastructure, marketing, and sales activities. Setting a sales target of EGP 5.1 bn, the company is expected to hand over the first phase of the project within three years from the launch, the company further highlighted.