Palm Hills Developments successfully concludes EGP 472.5 million Securitized Bond with EFG Hermes

Palm Hills Developments (PHD), a leading real estate developer in Egypt and, EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), jointly announced today the successful closing of an EGP 472.5 million securitized bond. 

The issuance is structured as follows:  

    Tranche A – valued at EGP 49.61 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 137.02 million with a tenor of 36 months and a credit rating of AA from MERIS

    Tranche C – valued at EGP 285.86 million with a tenor of 84 months and a credit rating of A from MERIS

Commenting on the issuance, Tarek Tantawy, Co-CEO and Managing Director of Palm Hills Developments, said: “We are pleased to once again be partnering with EFG Hermes for this securitization issuance, which marks an important milestone for PHD.

This collaboration not only diversifies our funding sources but also highlights our commitment to growth within the Egyptian real estate sector. We look forward to leveraging this strategic financing opportunity to further strengthen our market position and enhance our projects portfolio.”

Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, commented: “This transaction marks the beginning of a key program that will enable PHD to further strengthen its position in the market and capitalizes on a long-standing relationship with the leading Egyptian developer.

The issuance was met with strong interest from investors, reflecting the confidence in both EFG Hermes’ track record and PHD’s solid performance within the Egyptian real estate sector.

As a leading financial institution, EFG Hermes continues to leverage its extensive expertise and deep market knowledge to drive impactful financial solutions that facilitate business expansion and generate sustainable value for its partners.”

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 auditor.

National Bank of Egypt (NBE), Arab African International Bank (AAIB), and Al Baraka Capital acted as the underwriting banks, with Al Baraka Bank acting as a subscriber to the issuance. AAIB was also the transaction’s custodian.