- Orascom Development Egypt secured a 155 million loan from the IFC to refinance liabilities and fund hospitality asset upgrades, including the Mvenpick Resort.
- The loan features a 2.5-year grace period and 8.5-year maturity, with repayments starting in 2027, enhancing liquidity and extending debt maturities.
- ODE posted a 41.4 revenue increase in Q1 2024 and reported 74.9 growth for 2023, solidifying its market position amid expansion efforts.
Orascom Development Egypt ODE, a subsidiary of the Swiss real estate firm Orascom Development Holdings, a leading group majority owned by Egyptian billionaire Samih Sawiris, has secured a 155 million loan from the International Finance Corporation IFC.
The loan will be used to refinance existing liabilities and fund upgrades to the companys hospitality assets, including the Mvenpick Resort and Spa in El Gouna. ODE aims to reduce credit spreads, extend debt maturities, and improve the overall debt profile of its parent company, Orascom Development Holdings.
Orascom refinancing boosts liquidity, cash flowThe loan features a 2.5-year grace period and an 8.5-year maturity, with repayments beginning in the latter half of 2027.
Ashraf Nessim, Group CFO of Orascom Development, emphasized the benefits of the agreement. The support from the IFC enhances our ability to optimize financing terms and reflects the strength of our financial and operational standing, Nessim said.
The refinancing will reduce capital costs, improve liquidity, and increase free cash flow, reinforcing the companys long-term business strategy. ODE aims to maintain a net debt to adjusted EBITDA ratio below 1.3x to sustain a healthy balance sheet amid its expansion plans.
