Orascom Development Egypt (ODE) has announced a $155 million loan agreement with the International Finance Corporation (IFC) to refinance part of its debt and support growth within its hotel business.

The funds will also be used for capital expenditures, including renovations at the Movenpick Resort and Spa in El Gouna, the EGX-listed ODE said in a press statement.

The loan facility, which has a 2.5-year grace period and a total tenor of 8.5 years, includes semi-annual repayments starting in the second half of 2027. The financing terms will reduce interest margins from 4.25 percent to 3.80 percent for the USD portion and from 4.75 percent to 3.87 percent for the Euro portion, easing ODE’s cost of capital.

Ashraf Nessim, ODE’s Group CFO, noted that the refinancing will enhance liquidity and lower credit spreads, ultimately improving the company’s free cash flow while maintaining a net debt to Adjusted EBITDA ratio of under 0.4x.

ODE, the largest subsidiary of Orascom Development Holding, manages a portfolio that includes El Gouna on the Red Sea, O West in Sixth of October; Makadi Heights near the Red Sea; Taba Heights on the Sinai Peninsula, and Byoum in Fayoum. The company has over 50 million square metres of land, with 28 percent developed or under development, and operates 24 hotels with more than 4,900 rooms.

(Writing by SA Kader; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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