EFG Hermes closes second issuance of a securitisation bond worth EGP 2bn for subsidiary Corp-Solutions

Fatma Salah
3 Min Read

EFG Hermes and its subsidiary, EFG Hermes Corp-Solutions, announced the successful conclusion of the latter’s second issuance of a securitisation bond worth EGP 2bn.

The bond is backed by a receivables portfolio of EGP 2.9bn, representing 24 lease contracts.

The securitisation bond comprises of three tranches, with tranche A being valued at EGP 260m with a tenure of 13 months and a credit rating of AA+ from Middle East Ratings and Investor Services (MERIS).

Meanwhile, tranche B is valued at EGP 890m, with a tenure of 36 months, and a credit rating of AA from MERIS, and tranche C is valued at EGP 850m, with a tenor of 72 months, and a credit rating of A- from MERIS.

Commenting on the issuance, Mostafa Gad — Co-Head of Investment Banking at EFG Hermes — said: “Following the success of the first issuance in Corp-Solutions’ securitisation programme, we’re proud to have successfully concluded this second issuance, providing EFG Hermes Corp-Solutions with substantial new funding to expand their operations.”

“The completion of this second transaction among many others reflects the DCM team’s commitment to support the growth of businesses during today’s challenging financial landscape, fostering job creation and economic development,” he added.

“With our all-embracing product offering in the DCM space and our strong team of top professionals in the field, our objective is to provide world-class corporate financing solutions and alternatives to serve our clients’ needs and adapt to the evolving market dynamics.”

“This securitisation transaction is another milestone met in accelerating our operational growth and solidifying our position in the Egyptian market, and we’re proud to have secured such high ratings despite being late comers to the market — a testament of our strong financial position and solid business strategy,” said CEO of EFG Hermes Corp-Solutions Talal Al-Ayat.

“Diversifying our funding sources helps us achieve our goals in expanding our operational footprint and growing our client base through providing a wide variety of novel financial solutions as we continue our commitment to support private sector growth.”

EFG Hermes Corp-Solutions enjoys a healthy and diverse client mix of 20% SMEs and 80% mid-cap to large corporations covering a myriad of sectors such as real estate development, logistics and maritime shipping, printing and packaging, education, healthcare, and trading and distribution.

This year, the company aims to focus on adding on more SMEs to its roster of clients and leveraging synergies across EFG Hermes Holding’s verticals and subsidiaries to further expand the business.

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