EFG Hermes Concludes Advisory on Al Taamir Mortgage Finance – Al Oula’s First Securitization Issuance Worth EGP 998.5 million
This issuance marks the first in a wider EGP 3 billion securitization program for Al Oula, supporting the mortgage player in raising capital to finance its expansion plans
Cairo, March 8, 2023
EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today that its investment banking division has successfully concluded the first securitized bond issuance for Al Taamir Mortgage Finance – Al Oula, a prominent player in the Egyptian mortgage finance space, in a transaction worth EGP 998.5 million, as part of a wider EGP 3 billion securitization program.
The bond is backed by a portfolio assigned to Al Taamir for Securitization, the issuance’s special purpose vehicle (SPV), and is comprised of six tranches with both fixed and variable yields, structured as follows:
Fixed Yield Tranches:
Tranche A– Valued at EGP 73.5 million with a 13-month bond tenor and a credit rating of AA+ from Middle East Rating and Investors Service (MERIS)
Tranche B – Valued at EGP 186.2 million with a 36-month tenor and a credit rating of AA from MERIS
Tranche C – Valued at EGP 230.3 million with a 67-month tenor and a credit rating of A from MERIS
Variable Yield Tranches:
Tranche A – Valued at EGP 91.5 million with a 13-month tenor and a credit rating of AA+ from MERIS
Tranche B – Valued at EGP 203.4 million with a 36-month tenor and a credit rating of AA from MERIS
Tranche C – Valued at EGP 213.6 million with a 78-month tenor and a credit rating of A from MERIS
Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes commented: “We are delighted to be adding Al Taamir Mortgage Finance – Al Oula to our partner base, and to help them carry out their expansion plans as they look to broaden their presence in the ever-growing real estate space. As the Egyptian securitization landscape continues to witness rapid growth, we are leveraging our heavyweight track record to not only make way for investors to access lucrative opportunities, but also for our clients to utilize alternative, value-generating funding streams when looking to raise capital.”
This issuance comes on the heels of a series of securitization deals the division has concluded in the DCM landscape, including Misr Italia Properties’ second issuance worth EGP 986 million, Pioneers Properties for Urban Development’s third issuance worth EGP 292.5 million, and Premium International for Credit Services’ sixth and seventh issuances, worth EGP 170 million and EGP 200.6 million, respectively. 2022 saw the division advise on CIRA’s EGP 800 million future flow securitized bond offering — the first-of-its-kind in the market, and Bedaya’s securitized issuances, worth a total of EGP 1.61 billion – the first ever securitization deal for a real estate mortgage company.
Ayman Abdel Hamid, Managing Director and Vice Chairperson of Al Taamir Mortgage Finance – Al Oula, commented: “We are proud of the success our first securitized bond offering has garnered today, having leveraged the strength of the leading investment bank franchise in Frontier and Emerging Markets (FEM). We are confident this is only the beginning of a mutually beneficial and lasting partnership with EFG Hermes. The issuance will lay the foundation for us to further scale our operations in the market — as we have so ambitiously done over the last 20 years — and to continue providing the liquidity that our clients need to expand in the real estate space.”
EFG Hermes acted as sole financial advisor, book-runner, underwriter, and lead arranger on the transaction. Dreny and Partners acted as legal advisor, Bakertilly Mohamed Hilal & Wahid Abdel Ghaffar as the auditor, while Arab African International Bank (AAIB), National Bank of Egypt (NBE), and Banque du Caire (BDC) acted as the underwriting banks. AAIB also acted as custodian bank.
-Ends-
About EFG Hermes Holding
With a current footprint spanning 14 countries across four continents, EFG Hermes Holding (EGX: HRHO.CA – LSE: EFGD) has grown over 39 years of success to transform from a pure-play investment bank in MENA into an impact-driven universal bank in Egypt with the leading investment bank franchise in Frontier and Emerging Markets (FEM). Drawing on our proven track-record and a diverse team of talented employees, we provide a wide spectrum of financial services that include advisory, asset management, securities brokerage, research, and private equity to the entire FEM region. In our home country, we have the fastest-growing non-bank financial institutions (NBFI) platform with operations covering microfinance, leasing, factoring, Buy-Now Pay-Later (BNPL), digital payment solutions, mortgage finance and insurance.
And with its latest acquisition of majority stake in aiBANK, the Firm was able to provide commercial banking products and services.
Through its three verticals, the Investment Bank, Non-Bank Financial Institutions (NBFI) and Commercial Bank, the group is perfectly positioned to consistently bring disruptive financial products and services to the market space, offering a holistic portfolio that best serves its growing base of individual clients and businesses of all sizes.
Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Oman | Jordan | Pakistan | UK | Kenya | USA | Bangladesh | Nigeria | Vietnam | Singapore
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Group Chief Marketing & Communications Officer of EFG Hermes Holding
Omar Salama
Communications Manager of EFG Hermes Holding
The EFG Hermes Holding Public Relations Team
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In this press release, EFG Hermes 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 Hermes 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.
