Palm Hills Developments has commenced regulatory and technical procedures related to the issuance of Securitized Bonds by up to EGP1bn, as part of its plans to deleverage its Balance Sheet via monetizing receivables of up to c.EGP2.5bn over 2-3 years period.
The Company is currently processing necessary procedures including obtaining all required regulatory approvals and the Bonds' Credit Rating.
The first transaction is foreseen to close during the last quarter of 2016 for a total consideration of c.EGP350-450 million in receivables relating to delivered units in some of the Company's projects, with the balance to be issued during the course of FY2017/2018.
The Bonds will have an expected tenor of 5 years, and will mainly target money market funds, local banks and insurance companies.
The transaction proceeds will be mainly utilized in refinancing existing debt, in the form of non-recourse off Balance Sheet financing. The process is being managed by Sarwa Capital.