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PHDC - Palm Hills Developments News Story

$5.1 0.0  0.0%

Last Trade - 04/04/18

Sector
Financials
Size
Micro Cap
Market Cap £14.3m
Enterprise Value £214.0m
Revenue £236.1m
Position in Universe th / 1828

Palm Hills Develop - Press Release

Mon 19th December, 2016 3:08pm
RNS Number : 2730S
Palm Hills Developments S.A.E.
19 December 2016

Palm Hills Developments signs agreements with Sawra Capital, Arab African International Bank and Banque Misr in relation to its receivables securitization program and expect to launch the Securitization Bond for a total consideration of EGP404 million after receipt of EFSAs approval

Cairo/London, December 19, 2016: Palm Hills Developments ("PHD" or "the Company") signed today a number of agreements with Sawra Capital, Arab African International Bank and Banque Misr in relation to its receivables securitization program. These agreements will allow the consortium to launch the Securitization Bond ("the Bond") for a total consideration of EGP404 million after receiving the necessary regulatory approvals from the Egyptian Financial Supervisory Authority ("EFSA"), with the full proceeds to be used in pre-paying the Companys existing debt.

This milestone comes in line with the Companys plans to deleverage its Balance Sheet via monetization of receivables of up to c.EGP2.5 billion over 2-3 years. The Bond will be offered to local financial institutions via private placement over three tranches as follows:

First tranche (A): EGP122 million at a fixed coupon rate of 15.79% per annum, with a credit rating of AA+ (sf) and maturity in January 2018 non callable.

Second tranche (B): EGP185 million at a fixed coupon rate of 16.69% per annum, with a credit rating of AA (sf) and maturity in January 2020 callable.

Third tranche (C): EGP97 million at a fixed coupon rate of 17.39% per annum, with a credit rating of A (sf), and maturity in December 2021 callable.

The credit rating is based on the credit quality of the Bond, which reflects PHDs strict underwriting, collection and monitoring policies and procedures. The Bond will be issued in relation to receivables relating to 465 delivered units in the following projects: Golf Views, Golf Extension, Palm Hills Katameya, Palm Hills Katameya Extension, Hacienda Bay and Hacienda White. The transaction proceeds will be utilized in pre-paying existing debt, in the form of non-recourse off Balance Sheet financing.

The Bond will be fully underwritten by Arab African International Bank and Banque Misr. Sawra Capital, Arab African International Bank and Banque Misr will be issuing the Bond and promoting the subscription. Sarwa Capital will be acting as the transactions financial advisor. Arab Legal Consultants will be acting as the legal advisor for the securitization process, and Al Kamel Law will be acting as the legal advisor of PHD. Arab African International Bank will be acting as the sole custodian and PHDs financial advisor.

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About Palm Hills Developments

Palm Hills Developments, a leading real estate developer in Egypt, is a joint stock company established in 1997. Palm Hills builds integrated communities and has one of the most diversified land bank portfolios, spreading over 27 million square meters ("sqm") in Egypt, including 5 million sqm in Saudi Arabia. The Company's product offerings include primary homes on both West Cairo and East Cairo, as well as secondary homes by the Mediterranean Sea, North Coast.

As at end of 3Q2016, PHD delivered more than 5,754 units within its developments, including more than 1,500 units in 11 completed projects. Today, PHD has 14 projects under development, 6 projects in West Cairo, 6 projects in East Cairo and 2 projects in North Coast, translating into a sales backlog exceeding EGP9.3 billion. PHD is one of the most liquid and actively traded stocks on the Egyptian Stock Exchange, and is traded under the symbol "PHDC.CA".

The Company has a GDR listing on the London Stock Exchange, and is traded under the symbol "PHDC.LI". For more information, please visit: www.palmhillsdevelopments.com/

Investor Relations Contacts

Mamdouh Abdelwahab

Radwa Abu Elnaga

Tel +202 35351200, Extensions 1504

Investor.relations@phdint.com

Disclaimer

This presentation contains statements that could be construed as forward looking. These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of the number of units to be delivered, construction spending, projects' timelines and estimates regarding future growth of the business, financial results and other aspects of the activity and situation relating to the Company. Such forward looking statements are no guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward looking statements as a result of various factors. You are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this presentation, which is not intended to reflect Palm Hills Developments business or acquisition strategy or the occurrence of unanticipated events.


This information is provided by RNS
The company news service from the London Stock Exchange
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