EFG Hermes, an EFG Holding Company and the leading investment bank in the Middle East and North Africa (MENA) announced today that its investment banking division successfully concluded advisory on the EGP 1.64 billion securitized bond issuance for Bedaya Mortgage Finance, a subsidiary of EFG Finance, and one of the leading non-bank mortgage providers in Egypt. The issuance comes as their sixth since inception and the fourth in a wider EGP 3.0 billion program.
The bond is backed by a receivables portfolio assigned to Capital for Securitization, a GB company, as the issuance’s special purpose vehicle (SPV) and is comprised of four tranches with variable yields, structured as follows:
Tranche A – Valued at EGP 130.96 million, with a 13-month tenor and a credit rating of AA from Middle East Rating and Investors Service (MERIS)
Tranche B – Valued at EGP 450.18 million, with a 36-month tenor and a credit rating of A from MERIS
Tranche C – Valued at EGP 597.5 million, with a 60-month tenor and a credit rating of A- from MERIS
Tranche D – Valued at EGP 458.4 million, with an 81-month tenor and a credit rating of A- from MERIS
Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, said, “We’re pleased to have once again played a key role in supporting Bedaya Mortgage Finance on their sixth securitization issuance, a testament to their outstanding performance and the strength of our ongoing partnership. This transaction reflects the depth of investor confidence in Bedaya, and the strength of our debt capital markets platform in structuring and executing transactions that support our client’s long-term funding strategies. This sixth issuance marks a shift in the advancement of the mortgage finance sector in Egypt. At EFG Hermes, we have an unwavering commitment to delivering innovative, tailor-made debt solutions that unlock unmatched value for our clients and drive sustainable growth across the economic landscape.”
Tarek Abou-Gendia, CEO and Managing Director of Bedaya Mortgage Finance said, “This sixth issuance reaffirms our long-term vision of creating accessible and inclusive mortgage financing solutions for the Egyptian market. Working alongside EFG Hermes has enabled us to develop a dynamic securitization program that not only strengthens our liquidity position but also enables us to extend financing to a wider segment of Egyptians seeking to own homes. As we look ahead, we remain committed to driving innovation in the mortgage space and playing a pivotal role in shaping the future of real estate financing in Egypt.”
This transaction marks the latest in a series of debt issuances advised by EFG Hermes in the region. Most recently, EFG Hermes advised Valu on its 14th securitized bond issuance, worth EGP 463.3 million, as well as the fifth securitization for Bedaya, valued at EGP 1.78 billion. The firm also concluded advisory on Sylndr’s EGP 300 million working capital facility. It also completed a short-term note valued at EGP 433 million for EFG Corp-Solutions back in June and a senior unsecured short-term note for Hermes Securities Brokerage Company (HSB) in an EGP 600 million transaction.
EFG Hermes acted as the sole financial advisor and transaction manager, as well as a book-runner, underwriter, and arranger, on the transaction. The National Bank of Egypt (NBE), Arab African International Bank (AAIB), Banque Misr, and Al Baraka Bank acted as the underwriting banks. The National Bank of Egypt (NBE) also acted as the placement agent. Arab Banking Corporation (ABC) also acted as a subscriber to the transaction. Abu Dhabi Commercial Bank (ADCB) acted as the custodian bank. Barakat, Maher & Partners, in association with Clyde & Co, acted as legal advisors. Sherif Mansour Dabus of Russell Bedford served as the auditor.
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