Arab Finance: EFG Hermes, the group's investment bank, announced today EFG Holding A leader in the Middle East and North Africa markets, the Promotion and Underwriting Sector has succeeded in completing advisory services for the issuance of securitization bonds worth 400 million pounds for the “Premium International” credit services company, according to the statement sent on December 31.
This deal is the ninth issuance since the founding of Premium International, and the third within a securitization bond program worth 2 billion pounds.
The securitization process, secured by a portfolio of notes receivable, was assigned to EFG Hermes Securitization Company, and the issuance was offered in two tranches:
• The value of tranche (A) is 264 million pounds and has a duration of 12 months, with a fixed interest rate, and received a credit rating of P1 from the Middle East Institution for Credit Rating and Investor Service (MERIS).
• The value of tranche (B) is 136 million pounds and has a duration of 36 months, with a fixed interest rate, and obtained a credit rating of A from the Middle East Institution for Credit Rating and Investor Service (MERIS).
In this context, Mai Hamdy, Executive Director of the Debt Markets Department in the Promotion and Underwriting Sector at EFG Hermes, said that this deal is a testimony to the close partnership between EFG Hermes and Premium International over the years, which has witnessed the continuous cooperation of both parties. To provide innovative financing solutions specifically designed to support Premium International's growth process and liquidity needs.
Hamdi pointed out that this deal, as the ninth edition of Premium International, reflects its flexibility and commitment to maximizing value for all parties concerned, expressing EFG Hermes’ pride in the pivotal role it plays in facilitating the company’s access to various financing sources.
Hamdi also stressed EFG Hermes’ commitment to continuing to provide advanced debt capital solutions to meet clients’ needs, paving the way for companies to obtain different financing options, enabling them to expand the scope of their operations and grow their businesses despite the existing economic challenges.
This deal is the latest in a series of debt issuances for which EFG Hermes has completed advisory services in the region. Recently, the company completed advisory services for a credit facility deal worth 300 million Egyptian pounds to increase the working capital of Cylinder Company.
The company also succeeded in completing advisory services for the thirteenth issuance of securitization bonds worth EGP 519.2 million for Valeo, and the fifth issuance of securitization bonds for Bedaya Company worth EGP 1.78 billion, in addition to completing its advisory services for a short-term bond issuance deal worth EGP 433 million lasting one year. For the benefit of EFG Financial Solutions, in addition to completing the issuance of unsecured short-term bonds worth 600 million pounds for the benefit of Hermes. Securities Brokerage, wholly owned by EFG Holding Group
It is worth noting that EFG Hermes acted as the sole financial advisor, manager and promoter of the issuance, underwriter and sole arranger of the issuance deal. The Arab African International Bank played the role of underwriter and custodian, while the Suez Canal Bank played the role of underwriter and receiver of the subscription.
KPMG acted as the auditor, while Al-Derini & Partners acted as the legal advisor for the deal.
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