EFG Hermes Closes EGP 1.78 Billion Securitization Deal for Bedaya Mortgage Finance

EFG Hermes, an EFG Holding Company and the leading investment bank in the Middle East and North Africa (MENA), announced today that its investment banking division successfully concluded advisory on the EGP 1.78 billion securitized bond issuance for Bedaya Mortgage Finance, a subsidiary of EFG Finance , and one of the leading non-bank mortgage providers in Egypt. The issuance comes as their fifth since inception and the third in a wider EGP 10.0 billion program.

The bond is backed by a receivables portfolio assigned to Capital for Securitization, a GB company, as the issuance’s special purpose vehicle (SPV), and is comprised of four tranches with variable yields, structured as follows:

• Tranche A – Valued at EGP 178.05 million, with a 13-month tenor and a credit rating of AA from Middle East Rating and Investors Service (MERIS)
• Tranche B – Valued at EGP 569.76 million, with a 36-month tenor and a credit rating of A from MERIS
• Tranche C – Valued at EGP 614.27 million, with a 60-month tenor and a credit rating of A- from MERIS
• Tranche D – Valued at EGP 418.42 million, with an 81-month tenor and a credit rating of A- from MERIS

Commenting on the issuance, Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, an EFG Holding company, said, “Bedaya Mortgage Finance continues to set benchmarks in the mortgage industry, and we’re proud to support them in their journey to redefine how real estate financing is accessed in Egypt. The success of this fifth issuance underscores the market’s confidence in Bedaya’s innovative approach and robust financial performance, as well as the strength of our debt capital market team in structuring and executing landmark transactions. As we deepen our collaboration with Bedaya, we remain committed to delivering bespoke solutions that empower businesses to scale, optimize operations, and contribute to the overall growth of the financial ecosystem.”

Tarek Abou-Gendia, CEO and Managing Director of Bedaya Mortgage Finance, said, “This milestone issuance helps reinforce our position as a pioneer in Egypt’s mortgage finance sector and underscores the unwavering confidence of the market in our ability to innovate and deliver value. Partnering with EFG Hermes throughout this journey has enabled us to optimize our securitization strategy and expand access to home financing for a broader segment of the population.”

This transaction comes as the latest in a string of debt issuances advised on by EFG Hermes in the region. Most recently, the firm concluded advisory on Sylndr’s EGP 300 million working capital facility. EFG Hermes advised Valu on its thirteenth securitized bond issuance worth EGP 519.2 million, as well as the fourth securitization for Bedaya valued at EGP 1.4 billion. It also completed a short-term note valued at EGP 433 million for EFG Corp-Solutions back in June and a senior unsecured short-term note for Hermes Securities Brokerage Company (HSB) in an EGP 600 million transaction.

EFG Hermes acted as sole financial advisor and transaction manager, as well as a book-runner, underwriter, and arranger on the transaction. National Bank of Egypt (NBE) acted as an underwriting bank and a subscription bank. Al Baraka Bank acted as underwriting bank. Arab Banking Cooperation (ABC) and Société Arabe Internationale de Banque (SAIB) acted as subscribers to the transaction as well . Abu Dhabi Commercial Bank (ADCB) acted as the custodian bank. Barakat, Maher & Partners in association with Clyde & Co acted as legal advisors. Sherif Mansour Dabus–Russell Bedford served as the auditor.