Orascom Development's Holding (ODH) largest subsidiary in Egypt, Orascom Development Egypt (ODE) has successfully signed CHF 228.1 million debt rescheduling package with the Egyptian banks.
Altdorf, 12 June 2019 - Orascom Development Holding (ODH) is pleased to announce that its largest subsidiary in Egypt, Orascom Development Egypt (ODE) has signed a CHF 228.1 million debt rescheduling package, strengthening its balance sheet and creating more flexibility in advancing its projects.
The transaction involves the immediate cash payment of CHF 19.5 million out of a total CHF 38.9 million, with the remaining to be paid by end of June 2019. ODE's lenders agreed to reduce the interest rate margin on the foreign currency debt by 100 bps. This will reduce our weighted average cost of debt from 9.0% to 8.1% and result in savings of CHF 4 million (EGP 70 million) in interest payments for 2019 and a total of CHF 19 million (EGP 320 million) over the 6 years period (2019-2024).
The rescheduling terms and conditions also entails amending the remaining debt principal repayment schedule to better match the cash flow generation profile of ODE and alleviates the pressure without changing the final maturities of the loans by sculpting a "ballooned" structure whereby roughly 50% of the total debt principal is repaid in the final years.
*All rates used were as of 31st of May 2019
About Orascom Development Holding (ODH):
Orascom Development Holding (ODH) is a leading developer of fully integrated destinations that include hotels, private villas and apartments, leisure facilities such as golf courses, marinas and supporting infrastructure. Orascom Development's diversified portfolio of destinations is spread over seven jurisdictions (Egypt, UAE, Oman, Switzerland, Morocco, Montenegro and United Kingdom), with primary focus on touristic destinations. The Group currently operates nine destinations; four in Egypt (El Gouna, Taba Heights, Fayoum and Makadi Heights), The Cove in the United Arab Emirates, Jebel Sifah and Hawana Salalah in Oman, Luštica Bay in Montenegro and Andermatt in Switzerland. The shares of Orascom Development Holding (ODH) are listed on the SIX Swiss Exchange.
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