EGYPT – Sixth of October Development and Investment (SODIC) announced the success of its subsidiary SODIC Securitization in completing the first issue of securitization bonds worth LE 343 million (US$21.79m).
The company explained in a statement to the Egyptian Exchange that securitization bonds worth LE 343 million (US$21.79m) are secured by a portfolio of notes worth LE 384 million (US$24.40m), representing the value of the special future instalments of 753 units that were delivered in the Eastown Residences project in East Cairo, and the Caesar project in the North Coast.
Securitization describes the process of pooling financial assets and turning them into tradable securities.
SODIC added that the bond issue was offered in two tranches with durations of 13 and 36 months, where the issuance was rated AA + for the 13-month tranche and A for the 36-month tranche, respectively, according to the evaluation of the Middle East Credit Rating and Investors Service.
According to the statement, tranche A worth LE 235 million (US$14.93m) for a period of 13 months and has a credit rating of AA + with a fixed coupon rate of 9.55 percent, and tranche B of LE 108 million (US$6.86m) for a period of 36 months and has a credit rating of A with a fixed coupon rate of 9.9 percent.
Hermes acted as the financial advisor, arranger and promoter of the issue, as well as the underwriting partner, along with the National Bank of Egypt, the Commercial International Bank, the Arab African Bank and the Suez Canal Bank, the statement revealed.
White and Case’s office acted as the legal advisor for the transaction, while Hazem Hassan’s office acted as the financial auditor of the issue, and the Commercial International Bank acted as the custodian.
The Sixth of October Development and Investment Company (SODIC) achieved profits of LE 100.46 million (US$6.38m) during the first three months 2021, compared to profits of LE 30.006 million (US$1.91m) during the comparative period of 2020, taking into account minority rights.
The company’s total revenues rose during the period to LE 848.57 million (US$53.92m), compared to LE 528.98 million (US$33.61m) during the comparable period of 2020.
As for standalone results, the losses of the company declined during the period to LE 44.18 million (US$2.81m), compared to losses amounting to LE 79.718 million (US$5.07m) during the comparative period of 2020.