News Release
Q4 2021
Cairo, Egypt | 14th of October 2021
SODIC signs EGP 1.57 billion Long-Term Syndicated Facility to finance flagship development SODIC West
Cairo, Egypt, 14th October 2021; Sixth of October Development & Investment Company S.A.E. "SODIC" announced the signature of a long-term syndicated facility in the amount of EGP 1.57 billion with Arab African International Bank (AAIB) and Banque Misr (BM) to finance the company's West Cairo flagship development SODIC West.
The facility will be used to refinance EGP 1.1 billion outstanding on the EGP 1.3 billion medium-term facility signed in April 2017 and to partially finance the remaining CAPEX on our investment portfolio of leasable assets and real estate development projects in SODIC West.
The signature of the facility with two of Egypt's leading banks, namely Arab African International Bank (AAIB) and Banque Misr (BM) which acted as co-lead arrangers of the facility agreement, reflects SODIC's credibility as a developer and the banks' confidence in SODIC's ability to deliver on its commitments. This credibility, coupled with SODIC's long-term relationships with Egypt's leading banks, facilitate the company's access to the debt market, supporting our growth endeavours.
The facility comes in line with SODIC's goal to prudently increase its leverage to enhance shareholder returns and comes as a testament to SODIC's solid financial performance, strong cash flows, and liquid balance sheet. SODIC's leverage remains low, with bank debt outstanding recorded at EGP 2.4 billion on June 30th, 2021, reflecting a debt to equity ratio of 0.4x.
Commenting on the transaction, Omar Elhamawy, SODIC's Chief Financial Officer, said: "It is a pleasure to work again with AAIB and Banque Misr on this facility and to renew our long-term strategic relationship with these two leading banks. The facility will allow us to develop our investment portfolio of recurring revenue assets while preserving our cash resources and balance sheet's liquidity to support ongoing operations and pursue growth opportunities."
1 | SODIC | News Release |
Shareholding Structure as at 30/09/2021
18%
38%
13%
10%
5%
7% 9%
ACT Financial Consortium
Olayan Saudi Investment Company
Abanumay Family
Ripplewood Advisors L.L.C.
RIMCO
Ekuity Holding
Others
News Release
Q4 2021
Cairo, Egypt | 14th of October 2021
About SODIC
Building on a history of more than twenty five years of successful operations in Egypt, SODIC is one of the country's leading real estate development companies, bringing to the market award-winning large scale developments to meet Egypt's ever-growing need for high quality housing, commercial and retail spaces.
Headquartered in Cairo and listed on the Egyptian stock exchange (EGX) under OCDI.CA, SODIC is one of the few non-family owned companies traded on the EGX, with a strong corporate governance framework.
Forward Looking Statements
Statements contained in this document that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of SODIC. Such statements involve known and unknown risks, uncertainties and other factors; undue reliance should not be placed thereon. Certain information contained herein constitutes "targets" or "forward-looking statements," which can be identified by the use of forward-looking terminology such as "may," "will," "seek," "should," "expect," "anticipate," "project," "estimate," "intend," "continue" or "believe" or the negatives thereof or other variations thereon or comparable terminology. Actual events or results or the actual performance of SODIC may differ materially from those reflected or contemplated in such targets or forward- looking statements. The performance of SODIC is subject to risks and uncertainties. Various factors could cause actual results to differ materially from those expressed or implied by the forward-looking statements in this document including worldwide economic trends, the economic and political climate of Egypt, the Middle East and changes in business strategy and various other factors.
SODIC Investor Relations
Contact Information
Omar Nashaat onashaat@sodic.com (+202) 3827 0300
IR website ir.sodic.com
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SODIC - Sixth of October Development & Investment Co. SAE published this content on 14 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 October 2021 09:01:05 UTC.