Qalaa Holdings has announced the signing of an agreement to settle all its debts to Banque Misr, Banque du Caire, Arab African International Bank, and Al Ahli Bank of Kuwait in exchange for approximately EGP 4.547 billion. The debt will be settled through stocks while keeping the right to repurchase; land; and compensation for exchange rate changes and stock market price fluctuations beyond the agreed upon price.
Qalaa Holdings and its associated companies also signed an agreement to restructure and settle its debts to the Arab International Bank, under which Qalaa and its affiliated companies will pay approximately $184 million in installments extending until 2033, with interest equivalent to the SOFR rate and with an enhanced set of guarantees.
In this context, Ahmed Heikal, Founder and Chairman of the Board of Directors of Qalaa Holdings, expressed his happiness at the completion of this settlement. Heikal explained that “the strategy of Qalaa Holdings over the past fifteen years has centered around establishing and developing a large group of companies in various fields through 11 sectoral companies that currently employ more than 19,000 workers. All of these companies have reached profit and a healthy level of debt. Qalaa is proud of maintaining and growing these companies during a difficult period.”
“This scheduling and what follows is an important part of simplifying the budget format for shareholders and analysts, which ultimately reflects positively on the share price, which is one of the main goals of management in the coming period,” Heikal added.
For his part, Hisham El-Khazindar, Co-Founder and Managing Director of Qalaa Holdings, explained that “these agreements are the results of intense and extended negotiations over a long period, and represent an essential cornerstone in achieving the company’s priorities.”