EFG Hermes Successfully Concludes EGP 472 Million Securitized Bond Issuance for EMRC as Part of its EGP 3 Billion Issuance Program
تاريخ النشر: 11th, September 2023 GMT
EFG Hermes، the leading investment bank franchise in Frontier and Emerging Markets (FEM)، announced today that its investment banking division successfully concluded advisory on the first issuance for Egyptian Mortgage Refinance Company (EMRC) in a securitized bond offering worth EGP 472 million. This comes as the first issuance in a newly approved EGP 3 billion securitization program.
With this landmark securitization program، EMRC has become the first refinance mortgage company to securitize portfolios for mortgage companies in the Egyptian market. As EMRC operates as a refinance mortgage company، it acquired the securitized portfolio from Bedaya Mortgage Finance، which assumed the role of the transaction’s servicer.
The issuance is structured as follows:
Tranche A – valued at EGP 66.1 million with a tenor of 13 months and a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS)
Tranche B – valued at EGP 193.5 million with a tenor of 36 months and a credit rating of AA from MERIS
Tranche C – valued at EGP 212.4 million with a tenor of 69 months and a credit rating of A from MERIS
Maie Hamdy، Managing Director - Debt Capital Markets at EFG Hermes، commented: “The successful completion of the EMRC securitization issuance underscores EFG Hermes' commitment to driving innovation and progress within the financial market. This achievement not only amplifies our expertise as a financial services leader but also paves the way for transformative advancements in the mortgage landscape. EFG Hermes continues to reinforce its role as a pioneer in Egypt’s debt capital market، advising on an extensive variety of securitization deals in the country and garnering widespread investor interest. We are proud to have been a part of this milestone، supporting growth and innovation in the mortgage industry.”
Commenting on the issuance، Ehab Abou Ali، Managing Director from EMRC، said: “This milestone marks an important advancement for both EMRC and the primary mortgage market in Egypt. By securitizing portfolios for mortgage companies، we aim to enhance their liquidity، strength capital structure and promote accessibility for homeowners and prospective buyers. This collaboration with EFG Hermes aligns with our mission to facilitate the development of the housing finance sector and will aid us in the realization of our goals and long-term growth strategy.”
This issuance comes on the heels of EFG Hermes’ successful closing of an EGP 472.5 million securitized bond for Palm Hills Development (PHD)، and an EGP 958 million issuance for Bedaya Mortgage Finance. The investment banking division also concluded an EGP 805.5 million issuance for Madinet Masr (previously Madinet Nasr for Housing and Development)، Al Taamir Mortgage Finance – Al Oula’s EGP 998.5 million issuance، Valu’s EGP 856.5 million issuance، as well as an EGP 986 million issuance for Misr Italia Properties.
EFG Hermes acted as the transaction’s bookrunner، underwriter، and co-financial advisor alongside Al Ahli Pharos. Dreny and Partners acted as the transaction’s legal advisor، while KPMG acted as the auditor. National Bank of Egypt (NBE) and Arab African International Bank (AAIB) acted as the underwriting banks، with AAIB acting as the transaction’s custodian.
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About EFG Holding
EFG Holding (EGX: HRHO.CA – LSE: EFGD) is a trailblazing financial institution with an over 40-year track record of success in 12 countries across four continents. Through its three verticals — the Investment Bank (EFG Hermes)، Non-Bank Financial Institutions (NBFI) (EFG Finance)، and Commercial Bank (aiBANK) — the Firm offers markets a holistic portfolio of disruptive financial products and services that serve a growing base of individual clients and businesses of all sizes.
We are the leading investment bank franchise in Frontier and Emerging Markets (FEM)، providing a broad spectrum of financial services including advisory، asset management، securities brokerage، research، and private equity. In our home market، we are a universal bank with the fastest-growing NBFI platform that includes microfinance player Tanmeyah، leasing and factoring service provider EFG Corp-Solutions، universal financial technology powerhouse Valu، digital payment platform PayTabs Egypt، Bedaya for mortgage finance، and Kaf for insurance. Additionally، the Firm offers commercial banking solutions through aiBANK، a leading provider of integrated retail، corporate، and Islamic banking products in Egypt.
Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Jordan | Pakistan | UK | Kenya | USA | Bangladesh | Nigeria | Singapore
Learn more about us at https://www.efghldg.com/
For further information، please contact:
May El Gammal
Group Chief Marketing & Communications Officer of EFG Holding
[email protected]
Omar Salama
Communications Manager of EFG Holding
[email protected]
The EFG Holding Public Relations Team
[email protected]
Note on Forward-Looking Statements
In this press release، EFG Holding may make forward-looking statements، including، for example، statements about management’s expectations، strategic objectives، growth opportunities، and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Holding’s belief regarding future events، many of which، by their nature، are inherently uncertain and are beyond management’s control and include، among others، financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current، pending، and future legislation، regulations and regulatory actions. Accordingly، the readers are cautioned not to place undue reliance on forward-looking statements، which speak only as of the date on which they are made.
About EMRC
EMRC is a specialized financial institution established in June 2006 under Law 148 for the year 2001 to assume the role of a market maker and lay the foundation of an active secondary market with a primary mandate to operate as a second-tier، wholesale، market-based liquidity facility focused on refinancing mortgage loans originated by Primary Mortgage Lenders (PMLs)، it will raise funds initially through long-term loans from institutional investors and equity contributions from the founding investors and its shareholders، and from bond markets by becoming a well-rated and regular issuer in the capital markets.
Learn more about us at www.emrc-online.com
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EFG Hermes Successfully Completes Advisory on USD 500 Million IPO of Specialized Medical Company on the Saudi Exchange
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 completed its advisory on the USD 500 million initial public offering (IPO) of Specialized Medical Company(SMC)، one of the leading healthcare providers in the Kingdom of Saudi Arabia، on the Main Market of the Saudi Exchange(Tadawul). This marks EFG Hermes’ third IPO in the healthcare space in the past 12 months، further reinforcing its position as a trusted advisor across the region’s most dynamic sectors.
The company began trading today under the ticker 4019.
Specialized Medical Company offered a total of 30% of its total issued share capital through the sale of 75 million ordinary shares at SAR 25 per share، implying a market capitalization of SAR 6،250 million (USD 1،667 million). The orders recorded during the institutional book-building exceeded SAR 121.3 billion، representing a coverage of 64.7x.
Karim Meleka، Co-Head of Investment Banking at EFG Hermes، said، “We are proud to have advised on the IPO of Specialized Medical Company. Despite heightened geopolitical tensions in the region، the offering attracted overwhelming interest from a diverse base of local، regional، and international investors — a clear vote of confidence not only in SMC’s fundamentals but also in the resilience of Saudi Arabia’s capital markets and the strength of its macroeconomic outlook.”
SMC was founded in 1999 and is one of Riyadh’s leading multi-specialty private healthcare providers، with a 25-year track record of delivering high-quality، patient-centric medical care.The Company operates two state-of-the-art hospitals in Riyadhwith a combined capacity of 578 inpatient beds and 266 outpatient clinics. SMC is strategically expanding into Northern Riyadh، where rapid urban development is creating strong demand for healthcare services. With three additional hospitals، it is expected to capture over 25% of private hospital capacity in the area، establishing a leading position in an underpenetrated region with limited existing healthcare infrastructure – one that is set to become Riyadh’s new urban hub. Once operational، the new facilities are expected to more than double the Company’s current capacity to approximately 1،276 beds and 770 outpatient clinics.
EFG Hermes acted as a Joint Financial Advisor، Joint Bookrunner، and Joint Underwriter on the transaction.
EFG Hermes has advised on six IPOs across the region year to date، including landmark transactions on Tadawul، the Abu Dhabi Securities Exchange، the Muscat Stock Exchange، and the Egyptian Exchange، underscoring its regional leadership in equity capital markets.
- ENDS –
About EFG Holding
EFG Holding (EGX: HRHO.CA – LSE: EFGD) is a financial institution that boasts a remarkable 40-year legacy of success in seven countries spanning two continents. Operating within three distinct verticals — the Investment Bank (EFG Hermes)، Non-Bank Financial Institutions (NBFI) (EFG Finance)، and Commercial Bank (Bank NXT) — the company provides a comprehensive range of groundbreaking financial products and services tailored to meet the needs of a diverse clientele، including individual clients and businesses of all sizes.
EFG Hermes، the leading investment bank in the Middle East and North Africa (MENA)، offers extensive financial services، encompassing advisory، asset management، securities brokerage، research، and private equity. In its domestic market، EFG Holding serves as a universal bank، with EFG Finance emerging as the fastest-growing NBFI platform، comprising Tanmeyah، a provider of innovative and integrated financial solutions for small business owners and entrepreneurs، EFG Corp-Solutions، which provides leasing and factoring services، Valu، a universal financial technology powerhouse، Bedaya for mortgage finance، Kaf for insurance، and EFG Finance SMEs، which provides financial services for small and medium enterprises. Furthermore، the company delivers commercial banking solutions through Bank NXT، an integrated retail and corporate banking product provider in Egypt.
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