EFG Hermes Completes EGP 1.91 Billion Securitization for Bidaya
📋 Key Takeaway: EFG Hermes has successfully completed advisory services for a EGP 1.91 billion securitization for Bidaya, enhancing the real estate financing sector in Egypt.
Successful Securitization Process Completed
EFG Hermes, a leading investment bank in the Middle East and North Africa, announced today the successful completion of advisory services for a securitization issuance valued at EGP 1.91 billion on behalf of Bidaya, a prominent provider of non-banking real estate financing solutions in Egypt. This issuance marks the eighth for Bidaya since its establishment and the sixth under its securitization program.
The securitization, backed by a portfolio of receivables, was assigned to Capital Securitization, a subsidiary of GBI. The issuance was divided into four tranches with varying yields, showing a structured approach to meet diverse investor preferences.
The A tranche totals EGP 238.38 million with a duration of 13 months and an AA credit rating. The B tranche amounts to EGP 648.38 million with a 36-month duration rated A. The C tranche is valued at EGP 715.13 million for 60 months, also rated A, while the D tranche, worth EGP 305.12 million, has an 81-month duration and is rated A-.
Statements from Key Executives
Maya Hamdi, Executive Director of Debt Markets at EFG Hermes, expressed pride in collaborating once again with Bidaya for this significant issuance. She highlighted that the issuance reflects strong investor confidence in the quality of Bidaya’s portfolio and underscores the robust capabilities of the debt markets platform in providing innovative financing solutions that support clients’ ambitious growth strategies.
Tarek Abu Ghandy, Chief Executive Officer of Bidaya, stated that this issuance represents a pivotal step in the company’s journey and a strong testament to its commitment to facilitating access to real estate financing services in Egypt. He emphasized that the strategic partnership with EFG Hermes enables Bidaya to diversify its funding sources and accelerate growth, ensuring efficient service delivery to meet customer needs and contribute to the region’s economic development.
Roles and Partnerships in the Securitization
EFG Hermes acted as the sole financial advisor, sole lead manager, and underwriter for the issuance. The underwriting was supported by several banks, including the National Bank of Egypt (NBE), Banque du Caire (BDC), Commercial International Bank (CIB), Arab International Bank (SAIB), and Ahli United Bank (ABK). The United Bank (UB) participated in the subscription process, while Banque du Caire served as the subscription agent and Abu Dhabi Commercial Bank (ADCB) acted as the custodian.
Legal advisory for the issuance was provided by Al-Darini & Partners, while Baker Tilly served as the auditor. This collaboration highlights the multi-faceted approach and expertise involved in executing such complex financial transactions.
About EFG Hermes Group
EFG Hermes Holding (EGX: HRHO.CA – LSE: EFGD) has a direct presence in seven countries across two continents. The company, which originated in the Egyptian market, has expanded over four decades of continuous achievement. Its three business sectors—investment banking (EFG Hermes), non-banking financial solutions (EFG Finance), and commercial banking (Next Bank)—have solidified the group’s leading position and enhanced its capability to launch more financial products and services.
As the leading investment bank in the MENA region, EFG Hermes offers a unique range of financial and investment services, including advisory services, asset management, securities brokerage, research, and direct investment. In the Egyptian market, EFG Finance provides a comprehensive range of non-banking financial services, particularly targeting microfinance and entrepreneurs, alongside leasing and factoring solutions.
Frequently Asked Questions
What is the total value of the securitization completed by EFG Hermes?
The total value of the securitization is EGP 1.91 billion.
Who is Bidaya and what services do they provide?
Bidaya is a leading provider of non-banking real estate financing solutions in Egypt.
What roles did EFG Hermes play in the securitization process?
EFG Hermes acted as the sole financial advisor, lead manager, underwriter, and promoter of the issuance.
How many tranches were included in the securitization issuance?
The securitization issuance included four tranches with varying values and durations.
What is the significance of this securitization for Bidaya?
This securitization is a key step for Bidaya, enhancing its commitment to providing access to real estate financing in Egypt.
