Arab Finance: EFG Hermes, the investment bank of the… EFG Holding As a leader in the Middle East and North Africa markets, the Promotion and Underwriting Sector has succeeded in completing advisory services for the fourth issuance of securitization bonds worth 1.4 billion pounds for the benefit of Bedaya Real Estate Finance Company, a subsidiary of EFG Finance, which is the first non-profit real estate financing services company. A digital bank in the Egyptian market, according to the statement sent on October 13.
This is the second issuance within a securitization bond program worth 3.0 billion pounds. The securitization process, secured by a portfolio of notes receivable, was assigned to Capital Securitization Company, a subsidiary of GB Capital.
The issue was offered in 4 tranches with a variable return as follows:
• The value of tranche (A) is 63.7 million pounds, its duration is 13 months, and its credit rating is (AA) from the Middle East Credit Rating and Investor Service Company (MERIS).
• The value of tranche (B) is 353.9 million pounds, its duration is 36 months, and its credit rating is (A) from (MERIS).
• The value of tranche (C) is 509.6 million pounds, its duration is 60 months, and its credit rating is (A-) from (MERIS).
• The value of tranche (D) is 488.3 million pounds, its duration is 81 months, and its credit rating is (A-) from (MERIS).
For his part, Tariq Abu Jundia, CEO and Managing Director of Bedaya Company, expressed his pride in continuing to build on the success of previous issues, which have achieved significant returns since their launch in 2022.
Abu Jundia pointed out that the support provided by EFG Hermes will contribute to enhancing the company’s ability to take advantage of promising growth opportunities to provide exceptional services to clients, stressing its commitment to continuing innovation and keeping pace with the latest market developments in a way that ensures it maintains its position at the forefront of real estate financing institutions, and meets… Customer needs are constantly evolving efficiently while seizing promising opportunities.
Sherif Tawadros, Managing Director of Capital Securitization Company, said: “We are excited to strengthen our long-term cooperation with EFG Hermes through this issuance.
Capital Securitization Company as underwriter of the Notes Receivable Portfolio represents a significant milestone in our partnership. We are committed to driving innovation and providing unparalleled financial solutions that meet the evolving needs of our clients. This transaction not only showcases our collective expertise, but also reinforces our commitment to seizing new growth opportunities in the market.”
Commenting on this issuance, Mai Hamdy, Executive Director of the Debt Markets Department in the Promotion and Underwriting Sector at EFG Hermes, stated that the Debt Markets Department has succeeded over the years in completing many successful deals that contributed to consolidating its leading position in various sectors and enhancing the growth of the sector. By providing innovative solutions to companies that allow them to benefit from a variety of tools necessary to increase capital and develop their operations.
Hamdi added that this issuance comes within the framework of investors’ aspirations to continue building on the success achieved by previous issuances, as well as the success of Bedaya Company’s innovative business model and its vision for developing the real estate finance sector.
Hamdi pointed out that strengthening cooperation with Bedaya Company through the joint project between EFG Finance, Talaat Mostafa Group and GB Capital is in line with the company’s strategy to develop its business model by diversifying the product and service package and enhancing synergy and integration between the group’s various companies while continuing our partnership from During cooperation with GB Capital in this deal as a guarantor of the portfolio of notes receivable.
This deal is the latest in a series of debt issuances that EFG Hermes has completed in the region, as the company recently completed its advisory services for the issuance of short-term bonds worth 433 million pounds for EFG Financial Solutions last June.
In addition, the company succeeded in completing the issuance of unsecured short-term bonds worth 600 million pounds to Hermes Securities Brokerage Company, which represents the company’s fifth issuance and the second within a short-term bond issuance program approved with the necessary approvals worth 2 billion pounds for two years.
It is worth noting that EFG Hermes acted as the financial advisor, issue manager, and sole general arranger for the issue, and the company also played the role of underwriter.
The National Bank of Egypt (NBE) and Al Baraka Bank Egypt acted as guarantors. Abu Dhabi Commercial Bank Egypt also acted as custodian (ADCB).
The Arab Banking Corporation (ABC) and the Arab International Banking Company (SAIB) also participated in the subscription process.
Moreover, Barakat, Maher & Co., in cooperation with Clyde & Co., acted as legal advisor. Sheriff Mansour Dabbous and Russell Bedford also acted as auditors.
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