Cairo – Mubasher: Orascom Development Egypt inked a $155 million loan facility with the International Finance Corporation (IFC), which will be initially used to refinance the company’s existing debt.
The financing will also be directed to fund potential growth opportunities for the hotel business line in El-Gouna as well as planned capital expenditures for renovating the hotels, according to a press release.
The facility deal holds a grace period of two and a half years and a tenor of eight and a half years, with semi-annual repayments set to commence in the second half (H2) of 2027.
Ashraf Nessim, Group CFO of Orascom Development Egypt, commented: "This facility enables the company to optimise our financing terms considering our improved financial and operational profile and aligns with our objectives.”
“This proactive refinancing reduces our cost of capital and strengthens our liquidity,” Nessim added.
He indicated: “The lower credit spreads achieved through this deal will improve our free cash flow and support our overall business strategy while maintaining a net debt to Adjusted EBITDA [earnings before interest, taxes, depreciation, and amortisation] of less than 0.4x.”
Last August, the EGX-listed firm sold a commercial building to Seoudi Supermarket in exchange for EGP 332 million.
