EFG Hermes, a subsidiary of EFG Holding and the leading investment bank in the Middle East and North Africa (MENA), announced on Monday the successful closure of a senior unsecured short-term note issuance for the Hermes Securities Brokerage Company (HSB). HSB is a wholly owned subsidiary of EFG Holding, and this transaction amounts to EGP 600m. Notably, this marks the fifth issuance for the company and the second within an approved two-year program valued at EGP 2bn.
The national scale long-term senior unsecured entity rating for HSB has been affirmed as “BBB+” with a Stable Outlook. Additionally, the short-term senior unsecured issuer rating is “P2”. These ratings were provided by Middle East Ratings and Investor Services (MERIS). The 12-month bullet note will carry a variable rate coupon, with the first payment due after 6 months, followed by the final payment at the bond’s maturity. The proceeds from this issuance will be utilized to diversify HSB’s funding sources.
Maged El Ayouti, Co-Head of Investment Banking at EFG Hermes, expressed his satisfaction with the issuance, stating, “We are pleased to close the fifth bond issuance for HSB, and the second within its two-year EGP 2bn approved program. This reflects our ability to leverage the division to serve the Group’s subsidiaries—whether Valu, HSB, or EFG Corp-Solutions—in raising capital within the Egyptian Debt Capital Market. As the foremost investment bank in the MENA region’s DCM space, EFG Hermes continues to drive transformative financial solutions, fostering growth and innovation within the financial ecosystem and providing local and international investors access to the region’s investment products.”
HSB’s fifth issuance is part of a series of successful transactions in the debt capital market space. EFG Hermes’ investment banking division recently concluded various deals, including a securitized bond valued at EGP 421m for Palm Hills Developments, an issuance of EGP 159.2m for Qasatli, a bond issuance worth EGP 472m for the Egyptian Mortgage Finance Company (EMRC), and an issuance of EGP 958m for Bedaya Mortgage Finance. Additionally, they facilitated an issuance of EGP 953.1m for Valu, EGP 805.5m for Madinet Masr (formerly Madinet Nasr for Housing and Development), and an issuance of EGP 998.5m for Al Taamir Mortgage Finance – Al Oula.
EFG Hermes played a pivotal role as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger for this issuance.
