Palm Hills closes its 5th EGP1.5bln securitisation bond

Palm Hills Developments has closed its fifth and largest securitisation bond backed by a receivables portfolio worth 1.5 billion Egyptian pounds in collaboration with the Arab African International Bank (AAIB) and CI Capital Holding for Financial Investments.

The transaction resulted in net proceeds of 1.25 billion pounds; the value of 1,314 delivered residential units at several real estate projects, namely Golf Views, Golf Extension, Woodville, Palm Valley, Palm Parks, Village Gate, Hacienda Bay, Hacienda White 2, Capital Gardens, Palm Hills Katameya, and Palm Hills Katameya Extensions 1 and 2, according to a bourse disclosure on Sunday.

The three tranches of the receivables portfolio were rated AA+, AA, and A by the Middle East Ratings and Investors Service (MERIS).

AAIB’s investment banking arm served as the financial advisor, manager, and promoter of the transaction, along with CI Capital. In addition, AAIB, the Commercial International Bank (CIB), and Ali United Bank (AUB) acted as underwriters.

Yasseen Mansour, PHD’s Chairman and Group CEO, said, “We have securitised gross receivables worth 3.6 billion pounds since we started the securitisation program back in 2016.”

“The impact of said transaction will positively impact the company’s financial statements during the fourth quarter of 2020. We expect to engage in further securitisation transactions during 2021 with gross receivables portfolio of about 2.5-3.0 billion pounds.”