Palm Hills Developments (PHD) announced on Tuesday the signing of a loan agreement of EGP 505m with Ahli United Bank Egypt (AUB). The new facility will replace the existing medium-term loan previously granted by the Arab African International Bank (AAIB).
PHD’s Chairperson and Group CEO Yasseen Mansour said, “I am very pleased with this refinancing agreement, which is our second transaction as part of the company’s debt optimisation programme. With these agreements, PHD will further solidify its financial position and reduce the debt burden by improving the current credit terms, capitalising on the performance and maturity of some of our projects.”
Mansour added that this move comes in line with the PHD’s strategic direction towards leverage optimisation, reducing financing costs and cash flow enhancements.
According to the press statement, the loan will finance the outstanding balance of the existing facility for Palm Parks’ project, in addition to funding the project’s updated investment cost and remaining construction works to speed up the project’s completion.
PHD received a competitive financing scheme from AUB, compared to the terms and conditions of the existing credit facility.