Back to the complete issue
Tuesday, 11 May 2021

Sodic mulls securitized bond sale as Aldar continues DD

Sodic is reportedly planning to go to market with an offering of securitized bonds “in the next few weeks,” Al Mal reports, quoting sources it claims are in the know. The upmarket real estate developer is finalizing final regulatory approvals and has already sent a formal request to the Financial Regulatory Authority. It plans to use proceeds from the sale to finance its near-term investment plan, which involves purchasing new land in the North Coast, the sources claim.

Meanwhile, the UAE’s Aldar Properties is halfway through due diligence to acquire a majority stake in Sodic, Aldar CEO Talal Al Dhiyebi said on Bloomberg TV. The bid is “one of a number of [transactions] we are looking at in Egypt … [which is] one of the most lucrative and attractive real estate markets,” Al Dhiyebi said. Aldar submitted in March a non-binding offer to acquire at least 51% of SODIC’s shares at EGP 18-19 apiece. Sodic’s board then said it will allow due diligence to go ahead and would appoint EFG Hermes and an international advisor to provide counsel on the bid.

BACKGROUND- The securitization market has been busy so far in 2021, with developer Palm Hills being the latest to announce a sale when it closed an EGP 800 mn issuance late last month. EFG Hermes Corp-Solutions is also looking to securitize part of its portfolio this year after its total portfolio grew 55% last year, while Edge Holding is eyeing the securitization of a EGP 1 bn receivables portfolio next year. This is coming on the heels of a strong 2020 for the market as new sales picked up steam amid the pandemic.

What is securitization, you ask? You can read our recent in-depth explainer.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.