SODIC signs a long-term syndicated facility of EGP 1.57 bn, with Arab African International Bank (AAIB) and Banque Misr (BM) to finance the SODIC West project in West Cairo, Invest-Gate reports.
The facility will be used to refinance EGP 1.1 bn outstanding on the EGP 1.3 bn medium-term facility signed in back in April 2017, in addition to partially finance the remaining CAPEX on the investment portfolio of leasable assets and real estate development projects in SODIC West.
The facility comes in line with SODIC’s goal to prudently increase its leverage to enhance shareholder returns and as a testament to SODIC’s solid financial performance, strong cash flows, and liquid balance sheet. On the other hand, SODIC’s leverage remains low, with bank debt outstanding recorded at EGP 2.4 bn on June 30, 2021, reflecting a debt-to-equity ratio of 0.4x.
The signing ceremony is attended by SODIC’s Managing Director Magued Sherif, Vice Chairman and Managing Director of AAIB Sherif Alwy, Vice Chairman of Banque Misr Akef El Maghraby, and senior members from SODIC and both banks.
Commenting on the transaction, Elhamawy says, “The facility will allow us to develop our investment portfolio of recurring revenue assets while preserving our cash resources and balance sheet’s liquidity to support ongoing operations and pursue growth opportunities.”
“The leading role of AAIB in financing real estate developers relies on our expertise in offering comprehensive liquidity solutions needed for the execution of real estate projects, while enhancing investments and providing credit facilities that cater to the needs of investors and developers,” Alwy adds.
For his part, El Maghraby praises the cooperation between AAIB and Banque Misr, which led to the arrangement of this facility, asserting that Banque Misr’s involvement in this facility reflects its leading role in supporting the Egyptian economy, particularly in the real estate sector.