Egypt: Qalaa Holdings inks debt settlement agreement with 4 banks for $93.9mln

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Qalaa Holdings has sealed a debt settlement agreement with four banks for a total of EGP 4.547 billion, as per a statement.

The banks are Banque Misr, Banque du Caire, Arab African International Bank, and Al Ahli Bank of Kuwait.

Under the deal, Qalaa Holdings will sell 239.121 million shares, or 17.68%, of its subsidiary TAQA Arabia, while retaining the right to buy back these shares within five years.

On the other hand, the banks are entitled to resell the shares back to Qalaa Holdings in the sixth year.

The agreement also comprises a 60,127-square-meter land plot overlooking the Nile in Tibeen area, as well as compensations for fluctuations in exchange rate and stock prices.

Furthermore, Qalaa Holdings and its subsidiaries signed a debt restructuring and settlement agreement with Arab International Bank (AIB) through which loans owed to the latter will be restructured and settled via the payment of around $184 million in installments starting from 2023 until 2024.

A variable interest rate equal to secured overnight financing rate (SOFR) will be applied annually.

Established in 2004, Qalaa Holdings is a leading private equity company in Africa and the Middle East that invests in several core industries, including energy, cement, agrifoods, transportation, logistics, mining, printing, and packaging. It also provides asset management services, including fund and portfolio management as well as investment banking services, including financial advisory services on mergers and acquisitions.