Egypt’s Orascom Development inks $227.2 mln loan restructuring deal

Egypt’s Orascom Development Holding said on Thursday it has signed a deal to schedule its loans worth 3.8 billion Egyptian pounds ($227.2 million) to enhance its financial position.

The agreement will see the payment of 325 million pounds out of 650 million pounds, while the remaining amount will be paid at the end of this month.

Moreover, Orascom also signed a new deal with a bunch of lenders to reduce interest rate on foreign-currency loans by 100 basis points that will lead to decline the cost of borrowing from 10.5 percent to 9.3 percent.

This deal will save Orascom’s interest payment of 70 million pounds within 2019 and a total of 320 million within six years from 2019 until 2024.