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ODE signs $265m medium-term loan to refinance outstanding debt - Daily News Egypt

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ODE signs $265m medium-term loan to refinance outstanding debt

In a press statement on Monday, ODE said that it intends to use the proceeds to refinance its outstanding balances of debt to relieve the company from upcoming debt commitments, worth up to $215m.


Orascom Development Egypt (ODE) has signed a medium-term loan agreement, worth the equivalent of $265m, to refinance and upsize its outstanding debt. The loan has a seven-year term, with a 2.5-year grace period. 

In a press statement on Monday, ODE said that it intends to use the proceeds to refinance its outstanding balances of debt to relieve the company from upcoming debt commitments, worth up to $215m.

An additional tranche of up to $50m, in Egyptian Pounds, will be available for drawdown over two years for future growth opportunities at the discretion of the Group. It includes any planned capex for the roll out of new rooms and the renovation of hotels at the Group’s destinations. 

The Commercial International Bank (CIB), Banque Misr, Banque du Caire, and HSBC are acting as mandated lead arrangers, with EFG Hermes acting as the sole financial adviser. EFG Hermes is also the lead manager, global coordinator, and bookrunner for the transaction, with CIB acting as the Facility Agent on the transaction. 

Meanwhile, MHR & Partners acted as the legal counsel for ODE, while Helmy, Hamza & Partners acted as the legal counsel to the lenders.

ODE Group CEO Omar El Hamamsy said, “The seven-year tenor, with a 2.5-years principal repayment grace period, factors in the COVID-19 situation and permits for capex spending as the situation stabilises.” 

He added that the extension of maturity will fit with the Company’s financial profile, expansion plan and allow it to grow in the coming period.

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https://dailyfeed.dailynewsegypt.com/2020/11/23/ode-signs-265m-medium-term-loan-to-refinance-outstanding-debt/
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