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Press Release

Palm Hills and Sarwa Capital concludes securitization of EGP760 million receivables portfolio

March 6, 2019

Palm Hills Developments (“PHD” or “the Company”) and Sarwa Capital (“Sarwa”) announce the closing of the latest issue of securitization bond for PHD, backed by receivables portfolio 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 receivables portfolio’s net present value stood at EGP609 million, after applying a discount rate of 16.04% on the gross receivables portfolio of EGP760 million, calculated based on the average coupon of the Bond’s three tranches issued by Sarwa Capital. The three tranches received ratings of AA+, AA and A by Middle East Ratings and Investors Service (MERIS).

Sarwa Promotion & Underwriting acted as the Financial Advisor, Lead Manager and Arranger of the transaction. The issue was fully underwritten and co-arranged by Banque Misr and Arab African International Bank.

Yasseen Mansour, Chairman & Group CEO of PHD commented: “This latest and important issue comes in line with our plans to deleverage the Balance Sheet via monetization of receivables program of up to c.EGP5 billion, which started during 2017”.

Commenting on the bond issue, Ayman El Sawy, Managing Director of Sarwa Promotion & Underwriting, said “We are pleased to successfully close the third securitization bond for Palm Hills Developments issued as part of the agreed securitization program. In total to date, we have issued bonds for gross receivables of EGP1.6 billion out of the c.EGP5 billion program. We look forward to continuing the program with subsequent issues.”