Cairo for Investment and Real Estate Development (CIRA) aims to finalize a new financing operation worth EGP 500m by the end of this year, according to sources. The sources added that the proceeds will be used to reduce the debt levels of the company in the academic year 2024-2025.
The company projected, in its business results statement, to close on 31 August 2024 with a debt of EGP 2.938bn, which will increase slightly to EGP 2.971bn by the end of August 2025. However, the debt will decrease to EGP 2.444bn in August 2026, and further drop to EGP 1.9bn by August 2027.
Mohamed Kalla, the CEO of CIRA, stated that the company is close to completing the construction work for two new schools within the Cosmic Village in 6th of October city, expecting to accommodate 3,000 students. He also said that Badr University in Asyut has exceeded its targets, currently comprising 11 faculties instead of 7, and will be opened and operated by March 2024. The new faculties will increase the capacity by 6,000 students, in addition to the expected opening of Saxony Egypt University by September, the largest technological university in Egypt established in collaboration with Al Ahly Capital.
He stated that the company implemented proactive plans to hedge against economic challenges and high inflation rates, with a vision to execute projects with low capital expenditures. He explained that the proactive acquisition of the company’s land portfolio, used for the projects of Badr University in Asyut and school projects, saved capital expenditures amounting to EGP 3.5bn, exceeding the current debt levels of the company. He anticipated a reduction in debt levels by 2026.