Egyptian real estate developer Misr Italia Properties and EFG Hermes’ investment banking division announced the close of a first issuance worth EGP 794m in a EGP 2.5bn securitisation programme.
The bond is backed by a receivables portfolio of around EGP 1bn originated by two Misr Italia Holding subsidiaries.
The bond is comprised of three tranches, with the first divided into fixed instalments and the second and third to be disbursed based on the proceeds of the portfolio.
Tranche A is valued at EGP 214.3m with a tenor of 13 months, a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS), and a fixed coupon rate of 9.60%.
Tranche B isvalued at EGP 420.8m with a tenor of three years, a credit rating of AA from MERIS, and a fixed coupon rate of 9.95%.
Finally, tranche C is valued at EGP 158.8m, with a tenor of five years, a credit rating of A from MERIS, and a fixed coupon rate of 10.20%.
Mohamed Hany Al-Assal, the CEO and Managing Director of Misr Italia Properties, commented on the partnership saying that the “issuance will reflect positively on the financial statements of the company and will contribute to our commitment towards our clients for the timely delivery of units.”
“The company went through a rigorous operational review process by Moody’s subsidiary, MERIS, and received a very strong credit rating that we are proud of. This is the result of a very solid corporate governance and the hard work of top-notch executive and management teams.”
Commenting on the issuance, Mostafa Gad, the Co-Head of Investment Banking at EFG Hermes said “the transaction was met with widespread interest from investors, capitalising on our strength in the DCM space to continue generating value for our partners and clients through flexible alternative financial solutions. It is also part and parcel of our commitment to capitalise on the synergies inherent in our business model, with Misr Italia Properties having signed in October a sale and leaseback agreement with EFG Hermes Corp-Solutions and a home improvement financing arrangement for its clients through the firm’s Buy-Now Pay-Later (BNPL) fintech platform, valU, in November.”
EFG Hermes acted as the sole financial adviser, transaction manager, book-runner, underwriter, and arranger on the issuance. The Arab Investment Bank also participated in the transaction alongside the Commercial International Bank, Banque du Caire, National Bank of Egypt, and Suez Bank.