Cairo - Mubasher: EFG Hermes, an EFG Holding company, has concluded its advisory role on a securitized bond issuance for MLF Finance at EGP 1.13 billion.
The transaction marks MLF Finance’s first issuance under its new EGP 12 billion securitization program, according to a press release.
It is backed by a receivables portfolio assigned to EFG Hermes for Securitization, which acted as the special purpose vehicle (SPV) for the transaction.
The bonds carry a total tenor of 78 months and are issued across four tranches with variable interest rates.
Tranche A is valued at EGP 187.90 million, has a 13-month tenor, and is rated ‘AA+’, while tranche B totals EGP 449.90 million with a 36-month tenor and a credit rating of ‘AA’.
Furthermore, tranche C amounts to EGP 341.70 million, carries a 60-month tenor, and is rated ‘A+’, whereas tranche D is valued at EGP 159.50 million with a 78-month tenor and an ‘A-’ rating.
Ahmed Zahran, Founder, CEO, and Managing Director at MLF Finance, said: "This milestone was accomplished in collaboration with esteemed institutions including EFG Hermes, MERIS, KPMG, and Dreny & Partners.”
“Furthermore, we have obtained approval from the Financial Regulatory Authority (FRA) for a broader EGP 12 billion securitization program, which will further support our growth strategy and expansion plans within Egypt’s non-banking financial sector," the CEO added.
For her part, Maie Hamdy, Managing Director, Debt Capital Markets at EFG Hermes, commented: “This issuance for MLF Finance marks a significant step forward in expanding the company’s access to diversified financing channels.”
Meanwhile, EFG Hermes acted as sole financial advisor, sole transaction manager, bookrunner, underwriter, and arranger on the transaction.
The NBE, CIB, and Banque du Caire acted as underwriters, while NBE also served as custodian and Banque du Caire served as the placement agent.
Industrial Development Bank (IDB) was one of the subscribers, while Dreny & Partners acted as legal advisor and KPMG served as auditor.
Earlier this month, EFG Hermes acted as a joint global coordinator and joint bookrunner for Action Energy Company’s (AEC) private placement and listing on Boursa Kuwait’s Premier Market.
