Egypt’s Palm Hills agrees $98 million loan through subsidiary

Palm Hills, Egypt's second largest listed real estate developer, has agreed a medium-term loan worth 750 million Egyptian pounds ($98.3 million) with Banque Misr and other lenders, the company said on Tuesday.

Palm Hills Developments said its board of directors had agreed to act as guarantor of the loan to its subsidiary Palm Hills Middle East Company for Real Estate Investment.

"Part of the loan will be used to refinance a previous loan taken out by the subsidiary and the other part will be used to hasten work on the company's project in the north coast, having it end in 2017 instead of 2019", Palm Hills' head of investor relations, Mamdouh Abdel Wahab, told Reuters.

The company, which has yet to sign the agreement, arranged the loan with Banque Misr, the National Bank of Egypt , and the Arab African International Bank.

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