EFG Hermes concludes advisory on SODIC's first, EGP 343mln securitized bond offering

EFG Hermes acted as sole arranger on the EGP 343 million issuance which is the first in an EGP 1 billion securitization program for SODIC

EFG Hermes concludes advisory on SODIC's first, EGP 343mln securitized bond offering

EFG Hermes, the leading financial services corporation in Frontier Emerging Markets (FEM), and SODIC for Securitization S.A.E., SODIC’s wholly owned subsidiary, announced today the successful conclusion of the latter’s first securitization issuance. EFG Hermes acted as sole arranger on the EGP 343 million issuance which is the first in an EGP 1 billion securitization program for SODIC.  

The bond is backed by a receivables portfolio of some EGP 384 million, representing future instalments for 753 delivered units in SODIC’s East Cairo project Eastown Residences and North Coast project Caesar. The securitization bond was met with solid interest from investors and was heavily oversubscribed, which is a testament to the strength of SODIC’s operational and financial performance and EFG Hermes’ unmatched track record in the debt capital market (DCM) space.

The bond comprises of two tranches: Tranche A is valued at EGP 235 million, with a tenor of 13 months, a credit rating of AA+ from Middle East Ratings and Investor Services (MERIS), and a fixed coupon rate of 9.55%. Tranche Bisvalued at EGP 108 million, with a tenor of 36 months, a credit rating of A from MERIS, and a fixed coupon rate of 9.9%. Both tranches were credited.

Commenting on the transaction Omar Elhamawy, SODIC’s Chief Financial Officer, said: “We are very proud of the success of this transaction. The issuance of SODIC’s first securitization bond highlights our efforts to diversify our funding sources and benefit from the decline in interest rates. We are constantly exploring different funding options to enable growth and support to ongoing operations while maintaining the strength and liquidity of our balance sheet and financial position.”

Maged El Ayouti, Managing Director & Deputy Head of Investment Banking, commented: “Partnering with SODIC on their debut securitization offering which has attracted substantial interest from financing providers’ falls directly in line with our strategy to provide our clients with access to funding solutions that are tailored to their needs. Our partnership with industry heavyweights such as SODIC only serves to solidify the strength, dedication, and ability of our team to grow our capabilities in the debt capital markets space.”

EFG Hermes acted as the financial advisor, arranger, manager, promoter, and co-underwriter for the transaction along with National Bank of Egypt (NBE), Commercial International Bank (CIB), Arab African International Bank (AAIB), and Suez Canal Bank. In addition, White & Case acted as the legal advisor, and KPMG acted as the financial auditor for the issuance, with CIB acting as the custodian.


SODIC is one of the region’s leading real estate development companies, currently developing a number of diversified projects in Egypt. SODIC’s developments in East and West Cairo and Egypt’s North Coast range from residential, retail and commercial projects to large scale mixed-use developments. SODIC is listed on the Egypt’s Stock Exchange (Ticker OCDI). For more information please visit www.sodic.com.

Send us your press releases to pressrelease.zawya@refinitiv.com

© Press Release 2021

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.

More From Press Releases