Egyptian property giant Palm Hills heralds monetisation of receivables scheme

Egypt’s second-largest listed property developer, Palm Hills announced Sunday that it commenced monetisation of receivables programme including the issuance of securitised bonds by up to 1 billion Egyptian pounds ($112.6 million).

This comes as part of Palm Hills’ plans to deleverage its balance sheet through monetising receivables of up to 2.5 billion pounds over two to three-year period.

Bonds will have expected tenor of five years, will mainly target money market funds, local banks, and insurance companies.

The company further said the transaction proceeds to be mainly utilised in refinancing existing debt, in form of non-recourse off balance sheet financing.

First transaction is seen closing in last quarter of 2016 for total consideration of 350 to 450 million pounds in receivables relating to delivered units in some of Palm Hills’ projects.

Comments
Loading...