Egypt - EFG Hermes, an EFG Holding Company, successfully concluded advisory on the EGP 1.78 billion securitized bond issuance for Bedaya Mortgage Finance, according to a press release.

The issuance marked their fifth since inception and the third in a wider EGP 10 billion program.

Through its investment banking division, EFG Hermes acted as sole financial advisor and transaction manager, as well as a book-runner, underwriter, and arranger on the transaction.

The bond was backed by a receivables portfolio assigned to Capital for Securitization, a GB company, as the issuance’s special purpose vehicle (SPV), and is comprised of four tranches with variable yields, structured as follows:

It covered four issues, with tranche A valued at EGP 178.05 million, holding a 13-month tenor and a credit rating of AA from the Middle East Rating and Investors Service (MERIS).

Tranche B amounted to EGP 569.76 million, with a 36-month tenor and a credit rating of A from MERIS.

The third tranche stood at EGP 614.27 million, with a 60-month tenor and a credit rating of A- from MERIS.

Finally, tranche D was valued at EGP 418.42 million, with an 81-month tenor and a credit rating of A- from MERIS.

Tarek Abou-Gendia, CEO and Managing Director of Bedaya Mortgage Finance, said: “This milestone issuance helps reinforce our position as a pioneer in Egypt’s mortgage finance sector and underscores the unwavering confidence of the market in our ability to innovate and deliver value.”

The National Bank of Egypt (NBE) acted as an underwriting bank and a subscription bank. Meanwhile, Al Baraka Bank served as an underwriting bank.

Arab Banking Cooperation (ABC) and Société Arabe Internationale de Banque (SAIB) acted as subscribers to the transaction as well.

This transaction came as the latest in a string of debt issuances advised on by EFG Hermes in the region. Most recently, the firm concluded advisory on Sylndr’s EGP 300 million working capital facility.

EFG Hermes advised Valu on its thirteenth securitized bond issuance worth EGP 519.2 million, as well as the fourth securitization for Bedaya valued at EGP 1.4 billion.

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