Egyptian developer PHD joins EFG Hermes to close $15.29mln bond

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Egypt - Palm Hills Developments (PHD), a premium real estate developer in Egypt, said it has joined hands with EFG Hermes, a leading investment bank franchise in Frontier and Emerging Markets (FEM), for the successful closing of a E£472.5 million securitized bond.

The issuance is structured as follows:

*Tranche A – valued at E£49.61 million with a tenor of 13 months and a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS)

*Tranche B – valued at E£137.02 million with a tenor of 36 months and a credit rating of AA from MERIS

*Tranche C – valued at E£285.86 million with a tenor of 84 months and a credit rating of A from MERIS

On the issuance, Tarek Tantawy, the Co-CEO and Managing Director of Palm Hills Developments, said: "We are pleased to once again be partnering with EFG Hermes for this securitization issuance, which marks an important milestone for the group."

"This collaboration not only diversifies our funding sources but also highlights our commitment to growth within the Egyptian real estate sector. We look forward to leveraging this strategic financing opportunity to further strengthen our market position and enhance our projects portfolio," he added.

Maie Hamdy, Managing Director - Debt Capital Markets at EFG Hermes, said: "This transaction marks the beginning of a key program that will enable PHD to further strengthen its position in the market and capitalizes on a long-standing relationship with the leading Egyptian developer."

"The issuance was met with strong interest from investors, reflecting the confidence in both EFG Hermes' track record and PHD’s solid performance within the Egyptian real estate sector," stated Hamdy.

"As a leading financial institution, EFG Hermes continues to leverage its extensive expertise and deep market knowledge to drive impactful financial solutions that facilitate business expansion and generate sustainable value for its partners," he added.

EFG Hermes acted as the sole financial advisor, bookrunner, and underwriter, while ALC-Alieldean Weshahi & Partners were the transaction’s legal advisor and KPMG the auditor.

National Bank of Egypt (NBE), Arab African International Bank (AAIB), and Al Baraka Capital acted as the underwriting banks, with Al Baraka Bank acting as a subscriber to the issuance. AAIB was also the transaction’s custodian.

With a current footprint spanning 12 countries across four continents, EFG Holding has grown over 39 years of success to transform from a pure-play investment bank in Mena region into an impact-driven universal bank in Egypt with the leading investment bank franchise in FEM.