Ministry of Investment suggests allowing HOTAC to offer bonds

The Ministry of Investment is considering allowing the Holding Company for Tourism, Hotels, and Cinema (HOTAC) and its subsidiaries to offer fixed income bonds to lighten borrowing costs according to Minister of Investment Ashraf Salman.

He also suggested exchanging financing periods with cash flow, in a move to improve the financial position of Egyptian companies and transform them into profitable ventures.

Salman said the “progression of business sector companies has generated an urgent need to strengthen these companies’ financial positions, repair them in structural and technical terms, and consider unconventional solutions to the sector’s challenges”.

Salman added that he would follow-up with developments step-by-step to improve the companies’ situations, especially in the tourism and hotel sector which provides many direct and indirect job opportunities.