With an innovative pricing structure as first of its kind in the Egyptian Debt Capital Markets Al-Ahly Pharos investment banking, one of the subsidiaries of Al-Ahly Financial Services Group, which represents the integrated investment arm of the National Bank of Egypt, announced today that they acted as a financial advisor, transaction lead manager and arranger for the successfully closed Al Ahly Securitization Company’s first Securitization Issuance worth EGP 789 million secured by a portfolio of EGP 1.3 billion assigned by Rawasi for Urban Development, whereby Al Ahly Pharos, National Bank of Egypt, and Arab African International Bank act as the transaction’s underwriters. Arab African International bank acted as the custodian and the placement agent, Dreny & Partners acted as the legal advisor, and RSM Egypt as the auditor of the transaction, while MERIS "Middle East for Credit Rating and Investors Service", acted as the credit rating for the issue.
Ahmed Heider CEO & Managing Director of Al Ahly Pharos Investment Banking Group has expressed his contentment about the closure and issuance of the transaction and articulated his appreciation to all parties involved in the issuance with tremendous gratitude for the FRA for their continuous efforts and support throughout the transaction process and expressed his pride for the DCM team for their massive efforts through an exceptional period that exceeded expectations, as the investment banking team has managed to successfully close 9 transactions through this year that included acquisitions, public offerings in debt and equities, with the value exceeding EGP 40 Billion.
In the same regard, Amir Sherif Managing Director and Head of the DCM Division at Al Ahly Pharos has expressed his pleasure with this issuance particularly that it represents a new pricing structure that was presented to the first time in the Egyptian market which came as a part of the efforts of the current working team at the company to offer an innovative structure to address the market needs, this was witnessed by the closure of 15 Debt Capital Markets issuances with a value exceeding EGP 38bn since the beginning of 2022.
The bond was fully covered through the subscription of National Bank of Egypt, Arab African International Bank, ABK, Al Baraka Bank and MID Bank. The bond is comprised of three tranches rated by Middle East Rating Services (MERIS) as P1, AA and A respectively. The first tranche is worth EGP 101 million with a tenor of 12 months, the second is worth EGP 305 million with a tenor of 36 months while the third is worth EGP 383 million with a tenor of 59 months.
About Al-Ahly Pharos Investment Banking S.A.E.
Al Ahly Pharos Investment Banking is a leading investment bank operating in both Debt Capital Markets, Equity Capital Markets, as well as mergers and acquisitions sector in Egypt, providing clients with fully integrated financial services capitalizing on Al Ahly Financial Services group. Al Ahly Pharos is subsidiary of Al Ahly Financial Services, which represents the integrated Investment Bank owned by the National Bank of Egypt Group.
Al Ahly Financial Services is the investment bank of the National Bank of Egypt Group, offering a fully integrated financial services, with a leading market position in investment banking, securities brokerage and research, asset management, and Debt capital markets such as Securitization and Sukuk.
About Rawasi for Urban Development
Rawasi For Urban Development was established in 2021 as a Joint Venture company by NBE and Banque Misr with equal shares in response to the high performance of the urban development sector. The company was established for the purpose of Planning, establishing, and developing urban areas, as well as providing technical, economic, and engineering consultations in the field of real estate activities. Additionally, the company’s activities include purchasing of real estate assets for the purpose of development or sale. The company issued capital is EGP 2 bn & its paid-up capital and an issued capital is 200mn Rawasi for urban development buys out assets belonging to Talaat Mostafa Group consequently to the partnership agreement signed between them, and furthermore TMG is responsible for the collections for Rawasi.
