Cairo – Mubasher: The Investment Banking Division of Egyptian Financial Group Hermes Holding (EFG Hermes) has closed an EGP 500 million bond issuance for its subsidiary EFG Hermes Corp-Solutions.
The issuance, which comes in line with the unit’s expansion plans, is the first transaction of an EGP 3 billion bond programme, according to a press release on Sunday.
The bond, which received a credit rating of ’A-’ from Middle East Ratings and Investor Services (MERIS), consists of two parts. With a tenor of 24 months each, tranches A and B are valued at EGP 450 million and EGP 50 million, respectively.
EFG Hermes acted as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger for the bond issuance.
Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, said: “With the [Central Bank of Egypt] CBE hiking interest rates to curb inflationary pressures, the need for alternative corporate financing solutions continues to grow in tandem in our home market.”
Hamdy added: “At the same time, bonds in every corner of the global debt market are recovering as investors turn toward fixed-income assets once again.”
Talal El-Ayat, CEO of EFG Hermes Corp-Solutions, noted: “This issuance is part and parcel of our strategy to deepen our presence in the market, allowing us to finance our operational growth targets and execute on plans to expand and diversify both our leasing and factoring service offerings to reach a wider segment clients looking for sources of alternative corporate financing.”
It is worth mentioning that during the first three months (3M) of 2022, EFG Hermes generated EGP 448.10 million in consolidated net profit, an annual hike of 43.50% from EGP 312.13 million.
