EGYPT – Egyptian Financial Group Hermes Holding (EFG Hermes), has announced the successful completion of the issuance of the first tranche of EGP700 million (US$44.6m) from issuing securitized bonds with a total value of EGP6.5 billion (US$410m) for the benefit of “Amer Group”, “Porto Group” and “Qastali”.
The company added in a statement that it played the role of the single-issue manager and financial advisor in the first issue amounting to EGP700 million (US$44.6m) and secured with credit balances and receipts amounting to EGP911 million (US$58.04bn) from 5 exporting companies, including 4 subsidiaries of Amer Group and the real estate finance company “Qastali”, noting that the coverage rate of the first tranche has exceeded the size of the issue.
It stated that the process of issuing securitization bonds is scheduled to be completed in 3 segments with maturities of 13 months for the first tranche and a maturity period of up to 36 months for the second and up to 60 months for the third tranche, noting that the first tranche obtained an AA + credit rating from the Middle East Credit Rating Corporation (Meris Rating), while the second segment got a rating of AA, and the third segment received a rating of A.
Co-Chair of the Promotion and IPO Coverage Sector at EFG Hermes, Mustafa Gad, said that the new deal comes after the successful completion of a securitization deal in favor of Talaat Moustafa Group, bringing the total number of debt securities deals that have been implemented by the Promotion and IPO coverage sector in the debt arrangement markets 9 deals since the beginning of 2020, with a total value of EGP6 billion (US$380m).
Gad added that the success of the deal reflects the ability and efficiency of the work team to expand securitization deals, in light of the increasing importance of asset classes in the Egyptian market.
The approval of the program to issue securitization bonds for 9 issuing companies came during the month of December 2020, which includes 4 subsidiaries of Amer Group, 4 companies affiliated with the Porto Group, and Qastali Company.
The Arab African International Bank and Commercial International Bank acted as guarantors for the subscription, with Commercial International Bank also acting as custodian.