EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced Tuesday that its investment banking division has successfully closed the issuance of a senior unsecured short-term note for the Hermes Securities Brokerage Company (HSB) — a wholly owned subsidiary of EFG Hermes Holding — in a transaction worth EGP 250m. This marks the fourth issuance for HSB and the first in a newly approved two-year program worth EGP 2bn.
The Middle East Ratings and Investor Services (MERIS) affirmed the national scale long-term senior unsecured entity rating at “BBB+” with a Stable Outlook and the short-term senior unsecured issuer rating of “P2” to HSB. The 12-month bullet note will carry a fixed rate coupon paid at the end of the bond, with proceeds aimed at diversifying HSB’s funding sources.
Commenting on the issuance, Mostafa Gad, Co-Head of Investment Banking at EFG Hermes, said: “We are incredibly proud of the success our very own HSB’s previous issuances have garnered and are happy to be supporting the MENA region’s leading brokerage house as it closes its fourth issuance in the market and the first in its newly approved program. Our expansive presence in Egypt’s DCM space perfectly positions us to continue bringing in-demand, quality asset classes to the market, enabling our clients to capitalize on alternative, value-accretive funding solutions when looking to scale their operations, while unlocking access for local and global investors to the region’s most lucrative investment prospects.”
HSB’s fourth issuance is part of a series of several back-to-back transactions the Firm has successfully concluded in the debt capital market space. The investment banking division recently concluded advisory on valU’s fourth securitization issuance worth EGP 856.5m, Premium International for Credit Services’ eighth, EGP 193.65m securitized bond issuance, and Bedaya Mortgage Finance’s second, EGP 958m securitization issuance. The division also advised on the EGP 638m securitization issuance for Palm Hills Development (PHD), the second, EGP 805.5m issuance for Madinet Nasr for Housing and Development (MNHD), and Al Taamir Mortgage Finance – Al Oula’s first securitization issuance worth EGP 998.5m.
EFG Hermes acted as the sole financial advisor, sole transaction manager and book-runner, underwriter, and arranger on the issuance.
