Tharwa Securitisation is preparing to offer a sukuk programme for Palm Hills with a value of about EGP 3bn in the form of a partnership ('Musharka') during the first quarter (1Q) of 2022. Informed sources revealed that Palm Hills Development is preparing to launch a financing sukuk programme of EGP 3.2bn within two weeks, pointing out that the Financial Regulatory Authority (FRA) is studying the file now and the necessary approvals are being obtained to launch the issuance. The sources added that Meris Ratings is close to completing the study of the financing structure of the instrument as well as the credit rating. Tharwa Securitisation will play the role of the offering manager and general promoter, Misr Capital and Banque Misr will play the role of underwriters and payment agent for the issue, Ali Al-Din Al-Weshahi's office will serve as a legal adviser, and Hazem Hassan and Partners will play the role of financial controller. Furthermore, the Board of Directors of Palm Hills Development Company approved in its session on Saturday the company's issuance of EGP 3.251bn worth of sukuk in cooperation with Tharwa Securitisation to finance the Badia Project. Palm Hills achieved profits of EGP 653.33m from January to September 2021, compared to profits of EGP 536.55m in the comparative period of 2020. The company's revenues also rose during the period to EGP 5.89bn compared to 2020's EGP 3.55bn. Sales of Palm Hills Developments, during the past year, recorded EGP 17.3bn, an increase of 35% on an annual basis, and exceeded the sales target of EGP 15bn. A statement from the company attributed the growth in new sales mainly to the increase in the number of units sold, which amounted to 3,350 units in 2021, achieving an increase of 82% on an annual basis compared to a total of 1,840 units sold during 2020, supported by an increase in the average selling prices per square metre in the various projects of the company.
