Egyptian Financial Group Hermes Holding (EFG Hermes) and EFG Hermes Holding’s wholly-owned subsidiary, EFG Hermes Corp-Solutions, announced the successful conclusion of the latter’s second issuance of a securitisation bond worth EGP 2 billion.
Comprised of three tranches, the bond is backed by a receivables portfolio of c. EGP 2.9 billion, representing 24 lease contracts, according to a press release on Thursday.
Tranche A of the securitisation bond amounts to EGP 260 million, with a tenor of 13 months, and a credit rating of AA+ from Middle East Ratings and Investor Services (MERIS).
Moreover, tranche B is valued at EGP 890 million, with a tenor of 36 months, and a credit rating of AA from MERIS, and tranche C, the final tranche, is valued at EGP 850 million, with a tenor of 72 months, and a credit rating of A- from MERIS.
Commenting on the issuance, Co-Head of Investment Banking at EFG Hermes, Moustafa Gad, said, “Following the success of the first issuance in Corp-Solutions’ securitisation program, we’re proud to have successfully concluded this second issuance, providing EFG Hermes Corp-Solutions with substantial new funding to expand their operations.”
CEO of EFG Hermes Corp-Solutions, Talal El Ayat, stated: “Diversifying our funding sources helps us achieve our goals in expanding our operational footprint and growing our client base through providing a wide variety of novel financial solutions, as we continue our commitment to support private sector growth.”
EFG Hermes Corp-Solutions has a healthy and diverse client mix of 20% SMEs and 80% mid-cap to large corporations covering a myriad of sectors.
