Egypt banks eye rights to Orascom's tourism developments

Ahram Online, Monday 6 Jun 2011

Banks ask the luxury developer to grant propriety rights in El Gouna as part of revised LE850m loan deals

Egyptian banks have asked Orascom Hotels & Development (ODH), a subsidiary of Orascom Development Holding, to revise the terms and conditions for its LE850 million of outstanding loans, Egyptian financial newspaper Al Mal reports.

Under the new terms, the banks will hold proprietary rights of OHD’s properties in El Gouna, a tourist development on the southern Red Sea coast.

The decision to revise the terms and conditions is reportedly driven by the currently reduced occupancy rates at El Gouna. The loan has a seven-year tenor, with an additional two years grace period.

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