Cairo-based real estate firm Palm Hills Developments, led by Egyptian billionaire Yasseen Mansour, has successfully concluded a joint securitized bond issuance with EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM).
The EGP472.5-million ($15.3 million) securitized bond was structured to cater to Palm Hills’ financial needs and has garnered significant interest from investors. The issuance, divided into three tranches with varying tenors and credit ratings assigned by Middle East Ratings and Investors Service (MERIS), aims to bolster the company’s position in the Egyptian real estate sector and expand its projects’ portfolio.
Under this strategic financing opportunity, Palm Hills diversifies its funding sources and solidifies its position in the market. Tranche A, valued at EGP49.61 million ($1.61 million), carries an impressive credit rating of AA+ and a tenor of 13 months. Tranche B, valued at EGP137.02 million ($4.45 million), boasts a credit rating of AA and a longer tenor of 36 months. The largest tranche, Tranche C, valued at EGP285.86 million ($9.28 million), spans 84 months.
Tarek Tantawy, the co-CEO and managing director of Palm Hills Developments, expressed his satisfaction with the collaboration, emphasizing the significance of partnering with EFG Hermes for this issuance.
He stated: “We are pleased to once again be partnering with EFG Hermes for this securitization issuance, which marks an important milestone for PHD.” Tantawy further highlighted how this joint endeavor enhances their commitment to growth in the Egyptian real estate sector and strengthens their market position.
Palm Hills Developments, an Egyptian real estate developer and subsidiary of Mansour Group, specializes in developing residential, commercial, and resort communities. Led by Yasseen Mansour, who holds a significant 5.22-percent stake in the company, Palm Hills has an impressive portfolio of active investments in the country.
The recent financial results of Palm Hills show a 14-percent drop in profit in Q1-2023 compared to Q1 2022, mainly attributed to a surge in operating expenses that offset gains from increased sales.
However, the firm witnessed a robust demand for real estate assets in the first three months of 2023, resulting in a 22-percent rise in revenue from EGP2.9 billion ($93.85 million) to EGP3.52 billion ($113.92 million) over the same period.
