EFG Hermes, a leading investment bank and Palm Hills Developments (PHD), a noted real estate developer, have closed an EGP421 million ($13.63 million) securitised bond, the 2nd issuance in a EGP5 billion programme. 

The issuance is structured as follows:   

*Tranche A – valued at EGP50.52 million with a tenure of 13 months and a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS)

*Tranche B – valued at EGP155.77 million with a tenure of 36 months and a credit rating of AA from MERIS

*Tranche C – valued at EGP214.71 million with a tenure of 84 months and a credit rating of A from MERIS.

 

Significant interest

Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, commented: "The issuance garnered significant interest from investors, highlighting the ongoing significance and demand for top-tier real estate assets in the Egyptian market. This deal also underscores our leading role as the preferred financial advisor and arranger for securitisation transactions in Egypt, as we persist in delivering innovative, custom-tailored solutions across diverse sectors and industries to fortify our clients' financial stability and support their ambitious expansion strategies."

 

Tarek Tantawy, Co-CEO and Managing Director of PHD, said: "This accomplishment underscores our robust financial performance, the confidence investors have in our growth trajectory, and our capacity to secure funding from diverse channels. We eagerly anticipate channeling these funds into our continued expansion, aiming to surpass customer expectations by delivering timely, high-quality developments that ultimately enhance the overall value of the real estate market."

 

EFG Hermes acted as the sole financial advisor, bookrunner, and underwriter. ALC-Alieldean Weshahi & Partners acted as the transaction’s legal advisor, while KPMG acted as the transaction’s auditor. Arab African International Bank (AAIB), Commercial International Bank (CIB), and Al Baraka Capital acted as the underwriting banks. Al Baraka Bank and Ahli United Bank were subscribers to the issuance. AAIB was also the transaction’s custodian.--TradeArabia News Service