Cairo – Mubasher: EFG Hermes, the leading investment bank in Frontier and Emerging Markets (FEM) under EFG Holding, and Palm Hills Developments Company jointly closed an EGP 421 million securitised bond.
The issuance comes in line with the newly approved EGP 5 billion programme, according to a press release.
Meanwhile, the offering covers three auctions, with tranche A valued at EGP 50.52 million, carrying a tenor of 13 months and a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS)
Tranche B stands at EGP 155.77 million, holding a maturity period of 36 months and a credit rating of AA from MERIS.
With a tenor of 84 months and a credit rating of A from MERIS, tranche C is valued at EGP 214.71 million.
Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, said: "The issuance garnered significant interest from investors, highlighting the ongoing significance and demand for top-tier real estate assets in the Egyptian market.”
Tarek Tantawy, Co-CEO and Managing Director of Palm Hills, commented: "We eagerly anticipate channeling these funds into our continued expansion, aiming to surpass customer expectations by delivering timely, high-quality developments that ultimately enhance the overall value of the real estate market."
EFG Hermes acted as the sole financial advisor, bookrunner, and underwriter for the transaction. ALC-Alieldean Weshahi and Partners acted as the transaction’s legal advisor, while KPMG was the transaction’s auditor.
Arab African International Bank (AAIB), Commercial International Bank (CIB), and Al Baraka Capital acted as the underwriting banks.
Al Baraka Bank and Ahli United Bank were subscribers to the issuance. Meanwhile, AAIB was the transaction’s custodian.
In the first nine months (9M) of 2023, EFG Holding’s consolidated net profits hiked to EGP 2.09 billion from EGP 1.28 billion in 9M-22, including minority interest.
The real estate developer posted consolidated net profits after tax valued at EGP 1.12 billion in 9M-23, an annual surge from EGP 910.86 million in 9M-22, including non-controlling interest.
