Cairo: EFG Hermes’ investment banking division, the leading investment bank franchise in Frontier Emerging Markets (FEM), announced today the successful close of an EGP 425 million securitized bond issuance for real estate powerhouse Pioneers Properties for Urban Development and its affiliates – the second in an EGP 3.0 billion program. The bond is backed by a receivables portfolio of some EGP 613.5 million, assigned to EFG Hermes Holding’s Financial Group for Securitization as the issuance’s Special Purpose Vehicle (SPV).
The bond is comprised of four tranches, with the first and second tranches divided into fixed installments, and the third and fourth subsequently disbursed contingent on the proceeds of the portfolio.
- Tranche A – valued at EGP 57.4 million, with a tenor of 13 months, and a credit rating of AA+ from Middle East Ratings and Investor Services (MERIS)
- Tranche B – valued at EGP 42.5 million, with a tenor of 13 months, and a credit rating of AA+ from MERIS
- Tranche C – valued at EGP 144.5 million, with a tenor of 36 months, and a credit rating of AA from MERIS
- Tranche D – valued at EGP 180.6 million, with a 72-month tenor, and a credit rating of A from MERIS
Commenting on the transaction Maie Hamdy, MD, Debt Capital Markets (DCM) at EFG Hermes’ investment banking division, said: “We could not be prouder of the remarkable headway we are making in the DCM space as we continue to bring to market lucrative investment prospects that serve the needs of our clients and create value for our partners. The second issuance of Pioneers Properties for Urban Development, which comes as part of the EGP 3 billion program, has garnered significant traction from investors. This issuance comes on the heels of the first bond issuance worth EGP 651.2 million for Bedaya Mortgage Finance, Egypt’s leading provider of online mortgage financing solutions, and a key pillar of our Non-Bank Financial Institutions (NBFI) platform. At EFG Hermes, we are dedicated to leading on the most innovative and nascent products that are not only tailored to the market’s needs, but also unlock the strongest growth prospects for the Firm.”
Waleed Zaki, Chairman and CEO of Pioneers Properties for Urban Development, also commented on the transaction saying: “After a very successful first issuance, we are pleased to be partnering with EFG Hermes Holding once again. The second issuance for Pioneers Properties for Urban Development’s affiliates comes as an integral step in our strategy to continue expanding our operational footprint and client base, as we look for diversified funding solutions that bolster our capacities and enable us to capture a larger share of the rising demand in the Egyptian real estate landscape.”
EFG Hermes acted as the sole financial advisor, sole transaction manager and book-runner, underwriter, and arranger on the issuance. National Bank of Egypt (NBE), alongside Banque du Caire (BDC) and Commercial International Bank (CIB), acted as underwriters, with CIB also acting as the custodian bank. The legal advisor for the issuance was Baker & McKenzie and the auditor was KPMG.
This issuance comes on the heels of the Firm’s successful conclusion of the bond issuance for EFG Hermes Corp-Solutions, valued at EGP 500 million, and Bedaya Mortgage Finance’s first securitization issuance worth EGP 651.2 million, in June 2022. The transaction also follows the Firm’s successful advisory on Premium International for Credit Services’ sixth issuance, valued at EGP 170 million, in addition to the first issuance of EGP 300 million in Madinet Nasr Housing and Development’s (MNHD)’s securitization program, in January 2022.
About EFG Hermes Holding
With a current footprint spanning 13 countries across four continents, EFG Hermes Holding (EGX: HRHO.CA – LSE: EFGD) has grown over 38 years of success to transform from a pure-play investment bank in MENA into an impact-driven universal bank in Egypt with the leading investment bank franchise in Frontier Emerging Markets (FEM). Drawing on our proven track-record and a diverse team of talented employees, we provide a wide spectrum of financial services that include advisory, asset management, securities brokerage, research, and private equity to the entire FEM region. In our home country, we have the fastest-growing non-bank financial institutions (NBFI) platform with operations covering microfinance, leasing, factoring, Buy-Now Pay-Later (BNPL), digital payment solutions, mortgage finance and insurance.
Through its three verticals, the Investment Bank, Non-Bank Financial Institutions (NBFI) and Commercial Bank, the group is perfectly positioned to consistently bring disruptive financial products and services to the market space, offering a holistic portfolio that best serves its growing base of individual clients and businesses of all sizes.
Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Oman | Jordan | Pakistan | UK | Kenya | USA | Bangladesh | Nigeria | Vietnam
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About Pioneers Properties
Pioneers Properties is one of Egypt’s leading Real Estate developers, building fully integrated and sustainable communities, including commercial and first and second home properties. The company has been investing in Egypt’s resilient, high-growth Real Estate Sector in 2007. Pioneers Real Estate activities are spread across the wide real estate spectrum, including (but not limited to) investment, development, construction, consulting & management. The company’s developments are spread across Egypt in key destinations including El Sokhna, North Coast, Marsa Allam, 6th October and New Cairo.
Note on Forward-Looking Statements
In this press release, EFG Hermes Holding may make forward looking statements, including, for example, statements about management’s expectations, strategic objectives, growth opportunities and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Hermes Holding’ belief regarding future events, many of which, by their nature are inherently uncertain and are beyond management’s control and include among others,financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending and future legislation, regulations and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made.