Tarek Abdel Rahman, managing director, Palm Hills Development (PHD) said the EGP 2.4 billion credit facility secured for his company by nine banks will go for the repayment of EGP650 million worth of debts.
EGP 1.57 billion out of the credit facility will be used in financing expansions the company’s outstanding projects, the official added.
PHD signed a contract for an EGP 2.4 billion medium-term credit facility arranged and managed by Arab African International Bank (AAIB) in cooperation with the National Bank of Egypt (NBE) and Banque Misr.
The arranging banks contributed EGP 1.6 billion to the loan, while six other banks provided the remaining EGP 800.0 million, namely; Mashreq Bank, Faisal Islamic Bank of Egypt, Egyptian Gulf Bank, Arab Bank, Bank Audi, Société Arabe Internationale de Banque (SAIB).
The loan will be used to finance the company’s projects, particularly Golf Extension, Golf Views, Palm Parks, Hacienda White 2, and Palm Hills Katameya.
It has been reported that the loan will be provided in two tranches, EGP 828.0m and EGP 1.572bn, over a period of six and a half years, according to Al Mal.
PHD posted its consolidated financial statements for H1-14, which mirrored a decline by 6.3% in net profit to EGP 146.7 million, from EGP 156.5 million in the same period a year earlier.
Meanwhile, the property developer’s standalone financial results for the same period showed EGP 127.6 million net profit, compared with EGP 2.1 million net profit in H1-13. FY13 financial results had mirrored EGP 236.83 million net profit, against EGP 134.63 million net loss in FY12.