ALTDORF - Orascom Development Egypt (ODE), a subsidiary of Orascom Development Holding AG (ODH), has obtained a USD 155 million loan facility from the International Finance Corporation (IFC). The loan is aimed at refinancing existing debt and supporting growth and renovation initiatives within ODE's hotel portfolio in El Gouna, including the Movenpick Resort and Spa El Gouna.
The financing arrangement includes a 2.5-year grace period and an 8.5-year maturity, with repayment set to begin in the latter half of 2027. This agreement will allow ODE to reduce its cost of capital and enhance liquidity, with interest margins for the USD and Euro portions of the loan set at 3.80% over SOFR and 3.87% over Euribor, respectively. These terms represent a reduction from the previous margins of 4.25% and 4.75%.
Group CFO of Orascom Development, Ashraf Nessim, expressed satisfaction with the IFC's support, noting that the facility reflects the company's improved financial and operational profile. He emphasized that the lower credit spreads will bolster free cash flow and support ODE's business strategy, while keeping the net debt to adjusted EBITDA ratio under 1.3x.
Orascom Development Holding is known for developing fully integrated towns that include a mix of hotels, residential properties, and leisure facilities. The group's operations span across seven countries and include a variety of destinations, with its shares traded on the SIX Swiss Exchange.
This strategic financial move is expected to strengthen ODH’s position in the hospitality sector by optimizing its financing terms and supporting its expansion and modernization plans. The information for this report is based on a press release statement.
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