Egypt: Al-Derini and Co. closes $26.05mln securitization for Madinet Nasr, Hermes

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Egypt - Madinet Nasr for Housing and Development closed a securitization process worth EGP 805.5m within a multi-issuance programme of EGP 3bn.

Al-Derini’s office acted as a legal advisor for the issuance process in cooperation with EFG-Hermes to promote and cover the subscription. Hermes is the financial advisor and the issuance manager. It also plays the role of a guarantor to cover the subscription in cooperation with the National Bank of Egypt (NBE), the Commercial International Bank (CIB) and the Arab African Bank.

KPMG Hazem Hassan acted as the issuance auditor and CIB as custodian and subscription receiver.

The bonds were issued in exchange for the financial rights portfolio of Madinet Nasr for Housing and Development.

The issuance is divided into three tranches, the first tranche with a value of EGP 241.65m and rated AA+, the second tranche with a value of EGP 210.117m and rated AA, and the third tranche with a value of EGP 253.7m and rated A by the Middle East for Credit Rating and Investors Service.

Eman Raouf, partner and director of the Capital Market and Financial Services Department at Al-Derini Office, said that the issuance is in favor of Madinat Nasr for Housing and Development for a long-term business relationship, and helps the company create new investment opportunities and expand its projects, looking forward to achieving more successes in the future.