Cairo – Mubasher: The board of directors of Palm Hills Development Co approved the offer presented by the Commercial International Bank – Egypt (CIB) for a medium-term facility worth EGP 1.099 billion.

The facility will be used to repay a syndicated loan provided by the Arab African International Bank (AAIB), alongside other banks under a contract dated on 8 September 2014, the company said in a statement to the Egyptian Exchange (EGX) on Wednesday.

The loan is comprised of two tranches with maturities of five and four years, respectively, in addition to a five-month grace period.

The first tranche “will refinance Golf Views and Golf Extension projects by EGP 828 million and EGP 100 million due to other projects,” while the second tranche will be directed to “refinance the outstanding exposure of Palm Hills Katameya by EGP 171 million.”

It is noteworthy that during the first nine months of 2019, the real estate developer logged a net profit of EGP 544.3 million, down from EGP 640.2 million in the year-ago period, including minority shareholders’ rights.