Palm Hills Developments (PHD) and Sarwa Capital (Sarwa) announce the closing of the latest issue of securitisation bond for PHD, backed by the receivables portfolio’s net present value which stood at EGP 609m, after applying a discount rate of 16.04% on the gross receivables portfolio of EGP 760m, calculated based on the average coupon of the bond’s three tranches issued by Sarwa Capital.
The receivables portfolios are related to 670 delivered units in the following projects: Golf View, Golf Extensions, Palm Hills Katameya Extension (1&2), Hacienda Bay and Hacienda White 2.
The three tranches received ratings of AA+, AA and A by the Middle East Ratings and Investors Service (MERIS).
Sarwa acted as the financial adviser, lead manager, and the arranger of the transaction. The issue was fully underwritten and co-arranged by Banque Misr, and the Arab African International Bank.
“This latest and important issue comes in line with our plans to deleverage the balance sheet via monetisation of receivables programme of up to EGP 5bn, which started during 2017,” said Yasseen Mansour, PHD’s chairperson and the group’s CEO.
Moreover, Ayman El Sawy, the managing director of Sarwa, said that this issue is the third securitisation bond for PHD as part of the agreed securitisation programme, adding that Sarwa issued bonds for gross receivables of EGP1.6bn out of the EGP 5bn programme.