Cairo –  The investment banking division of EFG Hermes, an EFG Holding company, has completed advisory on a future cash flow securitisation issue for Badr University in Assiut (BUA), one of Cairo For Investment And Real Estate Developments’ (CIRA Education) flagship universities.

The issuance transaction marks the first standalone future cash flow securitisation for BUA, according to a press release.

The bond is valued at EGP 500 million and is backed by future revenues generated by BUA, comprising three tranches with variable yields.

Tranche A totals EGP 62.50 million, with a 34-month tenor, a credit rating of A from Middle East Rating and Investors Service (MERIS), and a variable interest rate.

Meanwhile, Tranche B is valued at EGP 155 million, with a 58-month tenor, a credit rating of A from MERIS, and a variable interest rate.

Tranche C stands at EGP 282.50 million, with an 82-month tenor, a credit rating of A from MERIS, and a variable interest rate.

Managing Director of Debt Capital Markets at EFG Hermes, Maie Hamdy, said: “After the success of our first two future cash flow issuances for CIRA, we are proud to continue leveraging our debt capital market knowledge structure to offer innovative financial solutions that allow educational institutions like BUA to unlock their full potential.”

Hamdy added: “By tapping into future cash flow securitization, BUA is now positioned at an advantage to strengthen its operational and developmental capabilities to meet the growing demand for top-notch education in Egypt.”

EFG Hermes acted as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger for this issuance.

The key partners included Suez Canal Bank as the subscription bank as well as an underwriter along with Al Baraka Bank was an underwriter, Abu Dhabi Commercial Bank (ADCB) as the subscriber.

In addition, Ahli United Bank (AUB) was the custodian bank, Zulficar & Partners Law Firm as the legal advisor, and PwC as the auditor.

This transaction comes as the latest in a string of debt issuances advised on by EFG Hermes in the region.

EFG Hermes recently concluded advisory on Premium International for Credit Services’ (Premium Card) EGP 400 million securitised bond issue.

Earlier, it completed a senior unsecured short-term note for Hermes Securities Brokerage Company (HSB) in an EGP 600 million transaction.

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