EFG Hermes’ consumer finance subsidiary Valu has kicked off its EGP 2 bn securitization program with a EGP 323 mn bond issuance, according to a statement (pdf) yesterday from the financial services corporation, whose advisory arm managed the issuance.
The security is backed by a EGP 369 mn receivable portfolio, and was given an investment-grade prime-1 rating by Middle East Rating Services, the statement read.
ts factoring and leasing arm, EFG Hermes Corp-Solutions, is also planning to take an EGP 300 mn issuance to market later this year.
Egypt’s securitization market has been on a roll these past few months: With Raya subsidiary Aman completing the issuance of EGP 585 mn in securitized bonds, while upmarket developer SODIC closed an EGP 343 mn securitized bond sale and financial leasing company EgyLease recently revealing that it is working to issue EGP 750 mn in securitized bonds.
Advisors: EFG Hermes acted as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger on the issuance. Dreny & Partners acted as legal advisor and KPMG was the auditor of the transaction. Suez Canal Bank and AAIB acted as underwriters and AAIB acted as custodian.
