Egypt's SODIC concludes $22mln securitized bond issuance

The bond is backed by receivables portfolio of units in Egypt projects

  
A car drives past Egyptian developer SODIC headquarters building on the outskirts of Cairo, Egypt November 13, 2016.

A car drives past Egyptian developer SODIC headquarters building on the outskirts of Cairo, Egypt November 13, 2016.

REUTERS/Amr Abdallah Dalsh

Egypt-based SODIC for Securitization S.A.E., a wholly-owned subsidiary of Egypt’s Sixth of October for Development and Investment Company (SODIC), has concluded its 343 million Egyptian pounds ($22 million) securitized bond issuance.

Financial services company EFG Hermes acted as sole arranger on the issuance which is the first in an EGP1 billion securitization program for SODIC, according to a statement issued by it.

The bond comprises of two tranches: Tranche A is valued at EGP235 million, with a tenor of 13 months and a fixed coupon rate of 9.55 percent. Tranche B is valued at EGP108 million, with a tenor of 36 months, and a fixed coupon rate of 9.9 percent.

The bond is backed by a receivables portfolio of approximately EGP384 million, representing future instalments for 753 delivered units in SODIC’s East Cairo project Eastown Residences and North Coast project Caesar.

Meanwhile, UAE-based listed developer Aldar Properties which is looking to buy a majority stake in SODIC, on Monday won an extension from the Egyptian stock market regulator to conduct due diligence.

In March 2021 Aldar, as part of a consortium, had submitted a non-binding offer of between EGP18-19 per share.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

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© ZAWYA 2021

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