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Cairo, 11 January 2022
EFG Hermes’ investment banking division, the
leading investment banking franchise in Frontier Emerging Markets (FEM),
announced the close of the first issuance, worth EGP 300 million, in leading real
estate development company Madinet Nasr Housing and Development’s (MNHD)
three-year EGP 3.0 billion securitization program. The bond is backed by
receivables portfolio of some EGP 373.9 million
for the first issuance.
The bond is comprised of three fixed-interest
tranches, with the first divided into fixed installments and the second and
third tranches to be disbursed as pass-through of
the proceeds of the portfolio. Tranche A is valued at EGP 120 million, with a
tenor of 13 months, and a credit rating of (AA+) from Middle East Ratings and
Investors Service (MERIS). Tranche B is valued at EGP 135 million, with a tenor
of three years, and a credit rating of (AA) from MERIS. Finally, tranche C is
valued at EGP 45 million, with a tenor of five years, and a credit rating of (A)
from MERIS.
Maged El Ayouti, Managing Director and Deputy
Head of Investment Banking at EFG Hermes, commented on the issuance, saying: “We are
excited to further cement our leading role as providers of value-accretive
solutions in Egypt’s Debt Capital Market (DCM) space with this latest step in
our partnership with MNHD, a principal player in the real estate market. This
issuance comes only two weeks following the funding of the EGP 750 million
financing arranged and provided by EFG Hermes in late December 2021 in the form
of a sale-and-lease back agreement, which is a testament to our ability to
capitalize on our strong execution capabilities and cross-selling power to suit
our clients’ needs.”
This transaction marks the second
securitization issuance and the third financing advisory provided by EFG Hermes
for MNHD. The first was MNHD’s debut securitization in 2019, while the second
is the EGP 750 million financing funded in late December, with EFG Hermes’
Investment Banking division acting as the financial advisor for the transaction
and EFG Hermes Corp-Solutions, a wholly-owned subsidiary of EFG Hermes Holding
and one of Egypt’s leading leasing and factoring companies, acting as the
lender.
“We are excited to take this next step that is
an essential element of our newly established leadership strategy,” said
Abdallah Sallam, President and Chief Executive Officer. “Our comprehensive
partnership with EFG Hermes enables our Company to employ broader and more
sustainable financing solutions that meet our long-term expansion goals,
empowering us to continue developing high-quality real estate across our Taj
City and Sarai projects.”
This issuance follows the Firm’s successful
conclusions of an EGP 627.5 million securitization issuance for Pioneers
Properties for Urban Development and the first issuance for EFG Hermes
Corp-Solutions, valued at EGP 790 million, both in December 2021. The
transaction also comes on the heels of the Firm’s successful advisory on
Premium International for Credit Services’ sixth issuance, valued at EGP 170
million, on January 4, 2021.
EFG Hermes acted as the co-underwriter and sole
financial advisor, transaction manager, book-runner, and arranger on the
issuance. CIB also acted as underwriter
and custodian.
-END-
About EFG Hermes Holding
With a current footprint spanning
thirteen countries across four continents, EFG Hermes Holding (EGX:
HRHO.CA – LSE: EFGD) started in Egypt and has grown
over 37 years of success to become a universal bank in Egypt with a leading
investment banking platform with access to emerging and frontier markets.
Drawing on our proven track-record and a diverse team of talented employees, we
provide a wide spectrum of financial services that include advisory, asset
management, securities brokerage, research and private equity to the entire
MENA region.
In 2015, EFG Hermes launched its
Non-Bank Financial Institutions (NBFI) Platform, which overlooks activities in
the non-banking finance field covering microfinance, leasing, factoring,
Buy-Now Pay-Later (BNPL), mortgage and insurance. This falls in line with the
Firm’s strategy to focus on two main pillars: product diversification and geographic
expansion into non-MENA markets, which has seen the Firm establish a physical
presence in Pakistan, Bangladesh, Vietnam, Kenya, Nigeria, the United Kingdom
and the United States. In 2021, the firm acquired a controlling stake in aiBANK
allowing the Firm to transform into a universal bank in Egypt.
Learn more about us at www.efghermes.com & stay
connected with us:
For further information, please
contact:
The EFG Hermes Public Relations
Team
PublicRelations@EFG-Hermes.com
May El Gammal
Group Head of Marketing & Communications
Note on Forward-Looking Statements
In this press release, EFG Hermes may make
forward looking statements, including, for example, statements about
management’s expectations, strategic objectives, growth opportunities and
business prospects. These forward-looking statements are not historical facts
but instead represent only EFG Hermes’ belief regarding future events, many of
which, by their nature are inherently uncertain and are beyond management’s
control and include among others, financial market volatility; actions and
initiatives taken by current and potential competitors; general economic
conditions and the effect of current, pending and future legislation,
regulations and regulatory actions.
Accordingly, the readers are cautioned not to
place undue reliance on forward-looking statements, which speak only as of the
date on which they are made.
About Madinet Nasr for Housing and Development
(MNHD)
Madinet Nasr for Housing & Development
(MNHD) is a leading Egyptian urban developer. Since inception, the company has
initiated and completed a number of key developments, including the majority of
the Nasr City district in the Greater Cairo Area, which covers an area of more
than 40 million square meters and is home to 3 million people. MNHD’s land bank
includes 3.5mn sqm in a prime location inside Cairo across from Cairo
International Airport and 5.5mn sqm in a strategic location on the Suez Road.
You can learn more about us on our website at www.mnhd.com
Abdallah Sallam
President and Chief Executive Officer
MNHD
4, Youssef Abbas St.
Nasr City, Cairo
Tel: +2 (02) 2400-6207
asallam@mnhd.com
Salah Katamish
Director of Investor Relations
MNHD
4, Youssef Abbas St.
Nasr City, Cairo
Tel: +2 (02) 2400-6207