Cairo - Mubasher: EFG Hermes, an EFG Holding company, concluded advisory on a securitized bond issuance for Bedaya Mortgage Finance, with a total value of EGP 1.91 billion, according to a press release.
The issuance marks Bedaya’s eighth securitization issuance since inception and the sixth under the capital securitization program. It is supported by a receivables portfolio assigned to Capital for Securitization, a GB company, which acts as the issuance’s special purpose vehicle (SPV).
The offering comprised four tranches with variable interest rates. Tranche A, valued at EGP 238.38 million, holds a 13-month tenor and a credit rating of 'AA.'
Tranche B amounted to EGP 648.38 million, with a 36-month tenor and a credit rating of ‘A’.
With a 60-month tenor and a credit rating of ‘A-‘, the third tranche stood at EGP 715.13 million.
The final tranche, valued at EGP 305.12 million, carries an 81-month tenor and a credit rating of ‘A-‘.
Managing Director of Debt Capital Markets at EFG Hermes, Maie Hamdy, commented: “This transaction reflects the continued confidence in Bedaya’s portfolio. It underscores the strength of our debt capital markets platform in delivering innovative financing solutions that support our clients’ growth strategies and the development of Egypt’s mortgage finance sector.”
CEO and Managing Director of Bedaya Mortgage Finance, Tarek Abou-Gendia, said: “Our strategic partnership with EFG Hermes enables us to broaden our funding sources and propel our growth, ensuring that we continue to meet the needs of our customers and contribute to the economic development of the region.”
EFG Hermes acted as the sole financial advisor, sole transaction manager, book-runner, underwriter, and arranger on the transaction.
The issuance was underwritten by the National Bank of Egypt (NBE), Banque du Caire, Commercial International Bank (CIB), Société Arabe Internationale de Banque (SAIB), and Ahli Bank of Kuwait (ABK).
The United Bank participated as a subscriber, while Banque du Caire acted as the placement agent. Abu Dhabi Commercial Bank (ADCB) served as the custodian bank. Dreny & Partners acted as legal advisor, and Baker Tilly served as the auditor.
Earlier this month, EFG Hermes was selected to manage the initial public offering (IPO) of Misr Life Insurance on the Egyptian Exchange (EGX).
