The Sixth of October Development & Investment Company or SODIC has said in an official statement that it has landed a long-term syndicated facility of EGP1.571 billion ($100 million).
The Egyptian builder has said it has managed to land the facility from the country’s two leading banks: Arab African International Bank and Banque Misr.
SODIC is expected to use this facility to finance its West Cairo flagship development known as SODIC West.
These two banks will reportedly act as co-partners of the new facility’s arrangement.
The new facility is expected to be utilized by the company to refinance its outstanding EGP11 billion ($62.9 million) on the EGP1.3 billion ($82.2 million) medium-term facility that was signed in April 2017.
The new facility is also expected to partly finance the existing CAPEX on the company’s investment portfolio of leasable assets and real estate development projects in the SODIC West.
SODIC’s leverage is said to be low, is in a bank debt outstanding recorded at EGP2.4 billion ($152.73 million) on June 30 this year.
This works out to a debt-to-equity ratio of 0.4x for the company.