EFG Hermes Successfully Closes Seventh Issuance for Premium International for Credit Services in Securitized Bond Offering Worth EGP 200.6 Million

After six successful issuances, the seventh issuance for Premium underscores the remarkable headway EFG Hermes has made in the nascent Egyptian securitization space as it continues to bring value-accretive products to the market

EFG Hermes, the leading investment banking franchise in Frontier and Emerging Markets (FEM), announced today that its Investment Banking division has successfully concluded advisory on the seventh issuance for Premium International for Credit Services (Premium) in a securitized bond offering worth EGP 200.6 million. This marks Premium’s second issuance this year and is part of a wider two-year EGP 2.0 billion securitization program.

The bond is backed by a receivables portfolio assigned to EFG Hermes Holding’s Financial Group for Securitization, the issuance’s Special Purpose Vehicle (SPV).

The bond is comprised of two tranches:

• Tranche A – valued at EGP 150.45 million, with a tenor of 10 months, and a Prime 1 rating (sf) from Middle East Ratings and Investor Services (MERIS)
• Tranche B – valued at EGP 50.15 million, with a tenor of three years, and a credit rating of A from MERIS

This marks the first offering of a medium-term securitization issuance with a tenor of three years, a direct reflection of Premium’s latest push to offer its clients innovative solutions with medium-term payment schedules.

Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, commented: “We are delighted to be a part of this transaction for Premium, which follows the back-to-back conclusion of valU’s third securitized bond issuance which comes as part of a wider EGP 2.0 billion program, Egypt’s first ever future flow securitization deal for CIRA Education and third issuance in Pioneers Properties for Urban Development’s bond program. The Egyptian securitized bond space continues to grow rapidly, with issuances in the market witnessing a substantial increase this year compared to 2021. Appetite for high-yield investments continues to rise, and we capitalize on this demand by charging the market with versatile debt products that generate superior investment returns and help Egyptian businesses enhance their liquidity and deliver on their growth plans.”

EFG Hermes acted as sole financial advisor, sole transaction manager and bookrunner, underwriter, and arranger on the issuance, with Commercial International Bank (CIB) and National Bank of Egypt (NBE) acting as underwriters.