Palm Hills successfully closes EGP 1.5bn securitisation transaction of gross receivables portfolio

Alyaa Stohy
2 Min Read

Palm Hills Developments (PHD) has announced the successful closing of its latest securitisation bond, backed by a receivables portfolio of EGP 1.5bn.

The closure took place in cooperation with the Arab African International Bank (AAIB) and CI Capital Holding for Financial Investments (CI Capital).

The transaction translates into net proceeds of EGP 1.25bn, corresponding to 1,314 handed-over residential units in the following projects: Golf Views; Golf Extension; Woodville; Palm Valley; Palm Parks; Village Gate; Hacienda Bay; Hacienda White 2; Capital Gardens; Palm Hills Katameya; and Palm Hills Katameya Extensions 1 and 2.

The receivables portfolio was categorised into three tranches, which received ratings of AA+, AA, and A, respectively, from the Middle East Ratings and Investors Service (MERIS).

AAIB acted through its investment banking arm as the financial advisor, manager and promoter jointly with CI Capital. In addition, the former acted as custodian, and cooperated with the Commercial International Bank (CIB) and the Ahli United Bank (AUB) as underwriters.

PHD Chairperson and Group CEO Yasseen Mansour said, “I am very pleased with the successful closing of our fifth and largest securitisation transaction.”

“We have securitised gross receivables worth EGP 3.6bn since we started the securitisation programme back in 2016,” Mansour added, “The impact of said transaction will positively impact the Company’s Financial Statements during the fourth quarter (Q4) of 2020.”

He also noted that the company expects to engage in further securitisation transactions during 2021, with a gross receivables portfolio of EGP 2.5bn-EGP 3bn.

Sayed Abdel Fadil, head of the Central Financing Administration at the Financial Regulatory Authority (FRA), said that the PHD securitisation process brings the total transactions in 2020 to EGP 15.5bn.

He added that more transactions, in excess of EGP 4bn, will take place before the end of the year, including an Amer group transaction of EGP 1.25bn.

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