EFG Hermes advises on EGP 159.2m second issuance for Qasatli as part of EGP 6.5bn securitisation programme

Daily News Egypt
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EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced Saturday that its Debt Capital Markets (DCM) team advised on the second issuance for mortgage finance company Qasatli worth EGP 159.2m. The issuance is part of the EGP 6.5bn securitisation programme that was approved in December 2020 for nine different originators: four subsidiaries of Amer Group, four subsidiaries of Porto Group, and Qasatli.

The issuance has the following structure:

  • Tranche A – valued at EGP 15.9m with a tenor of 13 months and a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS)
  • Tranche B – valued at EGP 73.2m with a tenor of 36 months and a credit rating of AA from MERIS
  • Tranche C – valued at EGP 70m with a tenor of 70 months and a credit rating of A from MERIS

Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes’ Investment Banking division, said: “We are delighted to have played a pivotal role in the successful conclusion of this transaction for Qasatli – the second issuance for the company that we have advised on – demonstrating a history of success and a strong partnership between our institutions. At EFG Hermes, we believe in the power of innovative financial solutions to drive economic growth, and this deal exemplifies our commitment to supporting progressive projects in Egypt. Our investment banking team’s dedication and expertise have been instrumental in structuring a transaction that aligns with Qasatli’s growth ambitions and the broader goals of Egypt’s housing finance sector.”

This issuance follows EFG Hermes’ successful closing of several securitised bond issuances for various companies in Egypt, such as Egyptian Mortgage Finance Company (EMRC), Palm Hills Development (PHD), Bedaya Mortgage Finance, Madinet Masr (previously Madinet Nasr for Housing and Development), Al Taamir Mortgage Finance – Al Oula, Valu, and Misr Italia Properties.

EFG Hermes acted as the bookrunner, underwriter, and financial advisor for the transaction. Dreny and Partners acted as the legal advisor, while KPMG acted as the auditor. Commercial International Bank (CIB) acted as the underwriting bank and the custodian for the transaction.

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