Sixth of October Development & Investment Company S.A.E. (SODIC) has recently entered into a Revolving Credit Facility agreement with Commercial International Bank (CIB) for a total amount of EGP 1.2 bn, Invest-Gate reports.
The facility has a tenor of seven years and is supported by receivables that represent future installment payments for units delivered across SODIC’s diverse projects.
By signing this facility, SODIC gains additional flexibility to monetize its growing portfolio of receivables, which will be used to finance the ongoing operations of its various projects. This move aligns with SODIC’s strategy to prudently increase its leverage in order to enhance returns.
Despite the new credit facility, SODIC’s leverage remains low. As of September 30, 2023, the company had EGP 3.34 bn of outstanding debt, resulting in a debt-to-equity ratio of 0.42x. This indicates that SODIC maintains a healthy balance between debt and equity, which is favorable for its overall financial stability and growth.