EFG Hermes announced that its Promotion and Underwriting Sector has successfully completed the first securitization bond issue for Madinet Nasr Housing and Development (MNHD) worth EGP 300 million as part of a program of 3-year bond issue worth EGP 3 billion.
Hermes added that the securitization bonds are secured by a debt portfolio of EGP 373.9 million for the first issue, according to a statement from the company to the Egyptian Stock Exchange on Tuesday.
In addition, Hermes said the bonds are offered in 3 fixed interest rate tranches, the first will be paid in fixed installments, and the second and third will be distributed based on portfolio returns.
Tranche A is worth EGP 120 million and has a term of 13 months and has a credit rating of AA + from the Middle East Credit Rating and Investors Service (MERIS). Tranche B is worth EGP 135 million and has a term of 3 years and is rated AA. Tranche C, however, has a value of EGP 45 million, has a term of 5 years and is rated A.
Maged Al-Ayouti, general manager of the promotion and underwriting business of EFG Hermes, said the issue comes two weeks after the conclusion of a financing deal worth EGP 750 million in December 2021, in which EFG Hermes acted as financial and financial advisor. .
This transaction represents the second securitization bond issue and the third transaction in which EFG Hermes provides advisory services to the MNHD.
The first securitization bond agreement was concluded in 2019, and the second financing agreement, for an amount of 750 MEGP, was signed at the end of December 2021 in the form of a financial lease, where the Promotion and Souscription acted as financial advisor to the agreement and EFG Hermes Financing Solutions – a wholly-owned subsidiary of EFG Hermes Holdings – as statutory auditor.
Abdullah Salam, CEO and Managing Director of MNHD, said the integrated partnership with EFG Hermes will enable the company to employ more sustainable financing solutions in the implementation of its long-term expansion plans, which contributes to strengthening its efforts to develop high quality real estate. projects in Taj City and Saray.