Egypt - EFG Hermes, a leading investment bank in Frontier and Emerging Markets (FEM), announced Wednesday the successful closing of the second securitization issuance of future flow bonds for CIRA Education, the largest provider of integrated educational services in the Egyptian private sector.
The issuance, valued at EGP 700m, is part of an approved EGP 2bn bond programme and is backed by future revenues from the company.
Mostafa Gad, Co-Head of Investment Banking at EFG Hermes, said: “We are pleased to have executed the second securitization issuance of future flow bonds for CIRA Education, following the first-of-its-kind transaction in Egypt for the company last year. This issuance and the broader securitization programme demonstrate EFG Hermes’ commitment to promoting financial inclusion and education in the Egyptian market, highlighting the role of private-sector participation in the education sector. We strongly believe that investing in education has a positive impact on Egyptian society, and we are confident that CIRA Education will continue to provide high-quality education through this bond issuance.”
The bond structure, which is secured by future revenues from CIRA Education, enables a diverse range of investors to participate, thanks to its favorable investment grade rating, and offers a new way for both public and private sector entities to access liquidity. This innovative financial instrument not only helps companies secure funding efficiently but also supports economic growth by stimulating investment across various sectors.
Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, commented: “We are proud to have played a key role in facilitating this EGP 700m bond issuance for CIRA Education, which showcases EFG Hermes’ leadership in financial markets and represents a significant step towards enhancing the educational infrastructure in Egypt. As we face a rapidly changing environment, we firmly believe that investing in education is a strategic priority that will drive not only economic development but also social progress. We look forward to seeing the positive impact this bond will have on CIRA’s growth story and the education sector as a whole.”
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