EFG Hermes’ Investment Banking Division announced on Sunday the successful close of a EGP 425m-securitised bond issuance for real estate powerhouse Pioneers Properties for Urban Development and its affiliates — the second in a EGP 3bn-programme.
The bond is backed by a receivables portfolio of EGP 613.5m assigned to EFG Hermes Holding’s Financial Group for Securitisation as the issuance’s special purpose vehicle (SPV).
The bond is comprised of four tranches, with the first and second tranches divided into fixed instalments and the third and fourth subsequently disbursed contingent on the proceeds of the portfolio.
Commenting on the transaction, Maie Hamdy — Managing Director of Debt Capital Markets at EFG Hermes — said: “We could not be prouder of the remarkable headway we are making in the DCM space, as we continue to bring to market lucrative investment prospects that serve the needs of our clients and create value for our partners.”
“The second issuance of Pioneers Properties for Urban Development — which comes as part of the EGP 3bn-programme — has garnered significant traction from investors. This issuance comes on the heels of a bond issuance worth EGP 651.2m for Bedaya Mortgage Finance — Egypt’s leading provider of online mortgage financing solutions and a key pillar of our Non-Bank Financial Institutions (NBFI) Platform,” she added.
“At EFG Hermes, we are dedicated to leading on the most innovative and nascent products that are not only tailored to the market’s needs, but also unlock the strongest growth prospects for the firm.”
Waleed Zaki — Chairperson and CEO of Pioneers Properties for Urban Development — also commented on the transaction saying: “After a very successful first issuance, we are pleased to be partnering with EFG Hermes Holding once again.”
“The second issuance for Pioneers Properties for Urban Development’s affiliates comes as an integral step in our strategy to continue expanding our operational footprint and client base, as we look for diversified funding solutions that bolster our capacities and enable us to capture a larger share of the rising demand in the Egyptian real estate landscape.”
EFG Hermes acted as the sole financial adviser, sole transaction manager, book-runner, underwriter, and arranger on the issuance.
The National Bank of Egypt, alongside Banque du Caire, and Commercial International Bank (CIB) also acted as underwriters, with CIB acting as the custodian bank, as well.
The legal adviser for the issuance was Baker & McKenzie and the auditor was KPMG.
