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Palm Hills Developments, a Cairo-based real estate firm led by Egyptian billionaire Yasseen Mansour, has successfully raised EGP638 million ($20.9 million) through a securitized bond with EFG Hermes as its sole financial advisor.
The recently concluded securitized bond offering generated widespread investor interest, thanks to its exceptional structure and premium pricing. This successful venture comes on the heels of the real estate firm’s seventh bond issuance program of EGP1.1 billion ($70 million) last year.
With total proceeds of $20.9 million, the group will utilize the funds to boost its financial capacity and expand its operations, focusing on operational activities and working capital requirements.
While commenting on the issuance, Tarek Tantawy, co-CEO and managing director of Palm Hills Developments, stated: “We are delighted to be building on our long-term relationship with EFG Hermes through the launch of this successful securitized bond offering.”
Tantawy revealed that this transaction has enabled Palm Hills to securitize gross receivables valued at EGP7.2 billion ($236.2 million) since the inception of its securitization program in 2016. This is in line with the company’s strategy to monetize its receivables portfolio and hasten the delivery timelines for its clients.
Palm Hills is a distinguished Egyptian real estate developer with an impressive portfolio of active investments in the country. As a subsidiary of Mansour Group, one of Egypt’s largest conglomerates, the company specializes in developing residential, commercial, and resort communities.
The real estate firm is led by Mansour, a leading Egyptian billionaire who holds a significant 5.22-percent stake in the Cairo-based company.
About three weeks ago, Palm Hills made a strategic decision to enhance shareholder value and optimize operations by reducing it’s issued and paid-up capital by EGP 120 million ($4.01 million) through the cancellation of 60 million treasury stocks.
The move was unanimously approved by the company’s board during its recent extraordinary general meeting (EGM), demonstrating a commitment to streamlining operations while maintaining optimal shareholder value.
