EFG Hermes announced on Tuesday that its investment banking division successfully concluded advisory on a EGP 750m financing over two tranches in a sale and leaseback package for Marakez.
The division acted as the sole financial advisor and arranger on the transaction, while EFG Hermes Corp-Solutions, a wholly-owned subsidiary of EFG Hermes Holding and one of Egypt’s leading leasing and factoring companies, acted as the leasing partner and EFG Hermes’ recently acquired aiBANK acted as the lender.
The transaction comes as part of a wider EGP 2.25bn financing package for Mall of Arabia, Marakez’s mega-mall located in 6th of October, covering a vast area of over 620,000 sqm. Mall of Arabia hosts a wide array of premium local and international brands, in addition to a residential development.
Maged El Ayouti, Managing Director and Deputy Head of EFG Hermes’ Investment Banking division, commented: “We are proud to have carried on our role as trusted partners in our long-standing relationship with Marakez in their EGP 2.25bn financing transactions over the past two years. This transaction is a testament to our ability to seamlessly cross-sell products across EFG Hermes, with this transaction seeing the first-time participation of both EFG Hermes Corp-Solutions and aiBANK alongside the Investment Banking division, cementing our positioning as a one-stop-shop for our clients’ ever-evolving financing needs. This latest funding marks a stepping stone towards tapping the local debt capital market (EGX) in the near future through prospective financing that capitalizes on the strong asset profile and robust cash flow generation of Marakez’s landmark property, Mall of Arabia.”
Talal El Ayat, CEO of EFG Hermes Corp-Solutions, said: “Collaborating with a leading real estate development such as Marakez is essential to our strategy of forging partnerships across industries that support our client’s growth plans through expanding their financing solutions. We are excited for the success of this transaction, which has maximized the benefits of our cross-selling power to allow us to add value through our premium financing opportunities to one of Egypt’s most rapidly expanding sectors that continues to profit from strong demand and solid growth.”
Tamer Seif, CEO and Managing Director of aiBANK, commented: “We are extremely delighted to have collaborated with other subsidiaries across EFG Hermes Holding to provide support to Marakez, allowing us to diversify our portfolio and increase our exposure to high quality, income-generating businesses. This transaction is part and parcel of our strategy to expand our offering and venture into new spaces through forging lucrative partnerships across key industries such as real estate, helping provide necessary financing for major projects across the country.”
Basil Ramzy, CEO of Marakez, said: “This collaboration comes within our strategy to join hands with established partners that further consolidate our leading market position and boost our expansion plans in Egypt and beyond it. EFG Hermes is a longstanding partner of Marakez and the current transaction is a testament to our solid financial performance and certainly advances our growth in new directions and landscapes.”
The transaction is a continuation to a series of advisory assignments successfully concluded for Marakez by EFG Hermes to support the Group in funding its developments and, in turn, maximizing shareholder value. Marakez has proven to be a resilient player in the real estate sector over the years, underpinned by a strong recurring income revenue base, and this transaction is proof of their sound financial performance and position in the market.