EFG Hermes, the leading investment bank in Frontier and Emerging Markets (FEM) under EFG Holding and Palm Hills Developments (PHD), a leading real estate developer in Egypt jointly announced today the successful closing of an EGP 421 million securitized bond, the second issuance in a newly approved EGP 5 billion program.
The issuance is structured as follows:
Tranche A – valued at EGP 50.52 million with a tenor of 13 months and a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS)
Tranche B – valued at EGP 155.77 million with a tenor of 36 months and a credit rating of AA from MERIS
Tranche C – valued at EGP 214.71 million with a tenor of 84 months and a credit rating of A from MERIS
Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, commented: “We are delighted to report the successful closure of PHD’s EGP 5 billion securitized bond program’s second issuance, which demonstrates our long-standing partnership with the prominent Egyptian developer. The issuance garnered significant interest from investors, highlighting the ongoing significance and demand for top-tier real estate assets in the Egyptian market. This deal also underscores our leading role as the preferred financial advisor and arranger for securitization transactions in Egypt, as we persist in delivering innovative, custom-tailored solutions across diverse sectors and industries to fortify our clients’ financial stability and support their ambitious expansion strategies.”
Tarek Tantawy, Co-CEO and Managing Director of PHD, expressed pride, stating, “We are delighted to sustain our enduring collaboration with EFG Hermes through the successful completion of our second issuance in the securitized bond program. This accomplishment underscores our robust financial performance, the confidence investors have in our growth trajectory, and our capacity to secure funding from diverse channels. We eagerly anticipate channeling these funds into our continued expansion, aiming to surpass customer expectations by delivering timely, high-quality developments that ultimately enhance the overall value of the real estate market.”
EFG Hermes acted as the sole financial advisor, bookrunner, and underwriter. ALC-Alieldean Weshahi & Partners acted as the transaction’s legal advisor, while KPMG acted as the transaction’s auditor. Arab African International Bank (AAIB), Commercial International Bank (CIB), and Al Baraka Capital acted as the underwriting banks. Al Baraka Bank and Ahli United Bank were subscribers to the issuance. AAIB was also the transaction’s custodian.
EFG Holding (EGX: HRHO.CA – LSE: EFGD) is a trailblazing financial institution that boasts a remarkable 40-year legacy of success in 12 countries spanning four continents. Operating within three distinct verticals — the Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and Commercial Bank (aiBANK) — the company provides a comprehensive range of groundbreaking financial products and services tailored to meet the needs of a diverse clientele, including individual clients and businesses of all sizes.
EFG Hermes, the leading investment bank in Frontier and Emerging Markets (FEM), offers an extensive array of financial services, encompassing advisory, asset management, securities brokerage, research, and private equity. In its domestic market, EFG Holding serves as a universal bank, with EFG Finance emerging as the fastest-growing NBFI platform, comprising Tanmeyah, a microfinance player, EFG Corp-Solutions, which provides leasing and factoring services, Valu, a versatile financial technology powerhouse, PayTabs Egypt, a digital payment platform, as well as Bedaya for mortgage finance and Kaf for insurance. Furthermore, the company delivers commercial banking solutions through aiBANK, a leading provider of integrated retail, corporate, and Islamic banking products in Egypt.
