EFG Hermes Successfully Concludes Advisory on the Third Issuance for EFG Corp-Solutions, worth EGP 1.0 Billion

EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today the successful conclusion of EFG Holding’s wholly-owned subsidiary, EFG Corp-Solutions’ third issuance of a securitization bond worth EGP 1.0 billion.

This milestone marks a significant expansion of EFG Corp-Solutions’ securitization program, which has now increased its value from EGP 3.0 billion to EGP 6.0 billion. The bond is backed by a receivables portfolio assigned to EFG Securitization as the issuance’s special purpose vehicle (SPV).

The securitization bond is comprised of three tranches:

• Tranche A – Valued at EGP 15.2 million, with a 12-month bond tenor and a Prime 1 (sf) rating
• Tranche B – Valued at EGP 465.5 million, with a 36-month bond tenor and an A+ (sf) rating
• Tranche C – Valued at EGP 531.3 million, with a 55-month bond tenor and an A+ (sf) rating

Commenting on the issuance, Moustafa Gad, Co-Head of Investment Banking at EFG Hermes said, “We are pleased to announce the successful conclusion of our third securitization bond issuance with EFG Corp-Solutions. The expansion of the securitization program to EGP 6.0 billion following the success of its first two transactions aims to further support the company’s growth by offering continued access to essential capital and financial solutions. This issuance not only provides EFG Corp-Solutions with substantial new funding, but also exemplifies our DCM team’s steadfast dedication to bolstering business growth in today’s challenging financial landscape.

EFG Hermes remains dedicated to building upon our varied portfolio of world-class solutions in the DCM space, and this successful securitization bond issuance is a testament to our continued efforts to meet the evolving needs of our clients.”

CEO of EFG Corp-Solutions, Talal El Ayat, said, “This accomplishment represents a significant advance in boosting our operational expansion and establishing our position in the Egyptian market.

The successful closing of the third issuance in our securitization program stands as a testament of our solid financial standing and fruitful business development plan. By utilizing a variety of funding sources, we can persist in achieving our goals of expanding our range of cutting-edge financial solutions, increasing our operational footprint, and diversifying our clientele. We are excited about the growth potential this expanded program offers and the opportunities it creates for both our organization and the broader financial ecosystem.”

This issuance comes on the heels of EFG Hermes’ successful closing of an EGP 922.3 million securitized bond offering for Valu, an EGP 472 million issuance for Egyptian Mortgage Refinance Company (EMRC) and an EGP 472.5 million securitized bond for Palm Hills Development (PHD). The investment banking division also concluded an EGP 805.5 million issuance for Madinet Masr (previously Madinet Nasr for Housing and Development), Al Taamir Mortgage Finance – Al Oula’s EGP 998.5 million issuance, Valu’s EGP 856.5 million issuance, as well as an EGP 986 million issuance for Misr Italia Properties.

EFG Hermes acted as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger on the issuance. Arab African International Bank (AAIB) acted as underwriter as well as custodian bank on the issuance. Arab Banking Cooperation (ABC) and Al Ahli Bank of Kuwait were subscribers to the issuance. KPMG was the auditor and Dreny & Partners was the legal advisor.