Cairo, Egypt: SODIC announced that SODIC for Securitization S.A.E., SODIC’s wholly-owned subsidiary, has successfully concluded its first securitization transaction. SODIC for Securitization issued an EGP 343 million securitization bond 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, a testament to the market’s trust in SODIC and its strong financial and operational performance and EFG Hermes’ unmatched track record in the debt capital market (DCM) space.
The bond comprises two tranches; Tranche A with an amount of EGP 235 million, a tenor of 13 months, a credit rating of AA+, and a fixed coupon rate of 9.55%, and Tranche B with an amount of EGP 108 million, a tenor of 36 months, a credit rating of A, and a fixed coupon rate of 9.9%. Both tranches were credited from Middle East Ratings and Investor Services (MERIS).
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 and Case acted as the legal advisor, and KPMG acted as the financial auditor for the issuance, with CIB acting as the custodian.
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.”
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 ongoing operations while maintaining the strength and liquidity of our balance sheet and financial position.”
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.
About EFG Hermes
With a current footprint spanning thirteen countries across four continents, EFG Hermes started in Egypt and has grown over 37 years of success to become a leading financial services corporation with access to emerging and frontier markets. Drawing on our proven track-record and a team of more than 5,500 talented employees, we provide a wide spectrum of financial services that include investment banking, asset management, securities brokerage, research and private equity to the entire MENA region.
In 2015, EFG Hermes launched its Non-Bank Financial Institutions (NBFI) Platform, which overlooks activities in the non-banking finance field covering microfinance, leasing, factoring, consumer finance, mortgage and insurance. This falls in line with the Firm’s strategy to focus on two main pillars: product diversification and geographic expansion into non-MENA markets, which has seen the Firm establish a physical presence in Pakistan, Bangladesh, Vietnam, Kenya, Nigeria, the United Kingdom and the United States. For further information about EFG Hermes, please visit www.efghermes.com and stay connected with us:
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© Press Release 2021