Palm Hills Developments, the Cairo-based real estate giant led by Egyptian billionaire Yasseen Mansour, has triumphantly concluded the issuance of a securitized bond valued at EGP421 million ($13.7 million).
The bond, marking the second issuance under a recently approved EGP5 billion ($163 million) program, was executed in collaboration with EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets.
Structured to cater to Palm Hills’ financial requirements, the securitized bond issuance is divided into three tranches with varying tenors and credit ratings assigned by Middle East Ratings and Investors Service (MERIS). The move aims to fortify Palm Hills’ standing in the Egyptian real estate sector and expand its diverse portfolio of projects.
Under this financing opportunity, Palm Hills diversifies its funding sources and solidifies its position in the market. Tranche A, valued at EGP50.52 million ($1.65 million), carries a credit rating of AA+ and a tenor of 13 months.
Tranche B, valued at EGP155.77 million ($5.07 million), boasts a credit rating of AA and a longer tenor of 36 months. The largest tranche, Tranche C, valued at EGP214.71 million ($7 million), spans 84 months.
Palm Hills’ Co-CEO Tarek Tantawy commends successful bond issuance with EFG Hermes
Tarek Tantawy, co-CEO and managing director of Palm Hills, expressed pride in the successful bond issuance, stating, “We are delighted to sustain our enduring collaboration with EFG Hermes through the successful completion of our second issuance in the securitized bond program.”
“This accomplishment underscores our robust financial performance, the confidence investors have in our growth trajectory, and our capacity to secure funding from diverse channels,” Tantawy added.
The Ritz-Carlton Palm Hills: A vision unveiled in West Cairo
Palm Hills Developments, the second-largest real estate company on the Egyptian Exchange, is renowned for its expertise in developing integrated residential, commercial, and resort communities.
A significant portion of the ownership of Palm Hills rests with the Al-Mansour and Maghraby Investment and Development Group, holding a 41.9-percent stake. Mansour, the chairman of Palm Hills Developments, owns a 7.29-percent stake in the leading real estate group.
The successful joint securitized bond issuance follows Palm Hills’ groundbreaking deal with Marriott International, valued at $130 million. This deal paves the way for the construction of the Ritz-Carlton Palm Hills in West Cairo.
The luxury mixed-use community, part of Palm Hills, promises breathtaking views of the Great Pyramids of Giza and the Palm Hills Golf Course. The development will include residential, commercial, dining, and entertainment spaces, redefining luxury living in Egypt.