Cairo - Mubasher: The Egyptian Financial Group Hermes Holding (EFG Hermes) completed the first issuance of securitised bonds for Misr Italia Properties at a total value of EGP 794 million.
The issue is backed by nearly EGP 1 billion worth of receivables portfolio by two subsidiaries of Misr Italia Holding, according to a statement by EFG Hermes on Sunday.
Being part of an EGP 2.5 billion securitisation programme, the concluded note covers the issuance of three tranches with ratings of ‘AA+’, ‘AA’, and ‘A’, respectively.
The first tranche stands at EGP 214.3 million and holds a tenor of 13 months, with a 9.60% fixed coupon rate.
The second offering is valued at EGP 420.8 million and will mature in three years, with a fixed coupon rate of 9.95%.
The third issuance amounts to EGP 158.8 million and will carry a tenor of five years and a fixed coupon rate of 10.20%.
For the disbursement method, the first offering will be divided into fixed instalments and the other two issues will be repaid based upon the proceeds of the portfolio.
EFG Hermes served as the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger for the issue.
Other banks taking part in the transaction were Arab Investment Bank (aiBANK), the Commercial International Bank (CIB), Banque du Caire (BDC), National Bank of Egypt (NBE), and Suez Bank.
Co-Head of Investment Banking at EFG Hermes, Mostafa Gad, commented: “It [the transaction] is also part and parcel of our commitment to capitalise on the synergies inherent in our business model, with Misr Italia having signed in October a sale and leaseback agreement worth EGP 750 million with EFG Hermes Corp-Solutions and a home improvement financing arrangement for its clients through the firm’s Buy-Now Pay-Later (BNPL) lifestyle enabling fintech platform, valU, in November.”
Misr Italia Properties’ CEO and Managing Director, Mohamed Hany El-Assal, said: “This issuance will reflect positively on the financial statements of the company and will contribute to our commitment toward our clients for the timely delivery of units.”
