EFG Hermes has announced that its investment banking division successfully concluded advisory on the first issuance for Egyptian Mortgage Refinance Company (EMRC) in a securitised bond offering worth EGP472 million ($15.29 million). This comes as the first issuance in a newly approved EGP3 billion securitisation programme. 

 

With this landmark securitisation programme, EMRC has become the first refinance mortgage company to securitise portfolios for mortgage companies in the Egyptian market. As EMRC operates as a refinance mortgage company, it acquired the securitised portfolio from Bedaya Mortgage Finance, which assumed the role of the transaction’s servicer.   

 

The issuance is structured as:

*Tranche A – valued at EGP66.1 million with a tenor of 13 months and a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS)

*Tranche B – valued at EGP193.5 million with a tenor of 36 months and a credit rating of AA from MERIS

*Tranche C – valued at EGP212.4 million with a tenure of 69 months and a credit rating of A from MERIS

 

Innovation and progress

Maie Hamdy, Managing Director - Debt Capital Markets at EFG Hermes, commented: “The successful completion of the EMRC securitisation issuance underscores EFG Hermes' commitment to driving innovation and progress within the financial market. This achievement not only amplifies our expertise as a financial services leader but also paves the way for transformative advancements in the mortgage landscape. 

 

“EFG Hermes continues to reinforce its role as a pioneer in Egypt’s debt capital market, advising on an extensive variety of securitisation deals in the country and garnering widespread investor interest. We are proud to have been a part of this milestone, supporting growth and innovation in the mortgage industry.”

 

Ehab Abou Ali, Managing Director from EMRC, said: “This milestone marks an important advancement for both EMRC and the primary mortgage market in Egypt. By securitising portfolios for mortgage companies, we aim to enhance their liquidity, strength capital structure and promote accessibility for homeowners and prospective buyers. This collaboration with EFG Hermes aligns with our mission to facilitate the development of the housing finance sector and will aid us in the realisation of our goals and long-term growth strategy.”

 

This issuance comes on the heels of EFG Hermes’ successful closing of an EGP472.5 million securitised bond for Palm Hills Development (PHD), and an EGP958 million issuance for Bedaya Mortgage Finance. The investment banking division also concluded an EGP805.5 million issuance for Madinet Masr (previously Madinet Nasr for Housing and Development), Al Taamir Mortgage Finance – Al Oula’s EGP998.5 million issuance, Valu’s EGP856.5 million issuance, as well as an EGP986 million issuance for Misr Italia Properties.--TradeArabia News Service