Tuesday, 27 July 2021

Sodic closes EGP 343 mn securitized bond sale

Upmarket developer SODIC has closed a EGP 343 mn securitized bond sale backed by a receivables portfolio of nearly EGP 384 mn that includes future installments from 753 delivered units in Eastown Residences and Caesar, the company said in a statement (pdf). The bonds were issued in two tranches with tenors of 13 and 36 months and ratings of AA+ and A.

Advisors: EFG Hermes acted as the financial advisor, arranger, manager, promoter, and co-underwriter for the transaction alongside CIB, the National Bank of Egypt, AAIB, and the Suez Canal Bank. White and Case was legal advisor, while KPMG was financial auditor and CIB had custodian duties.

BACKGROUND- The securitization market has been lukewarm so far this year: Sodic, Palm Hills Development, Premium International and Arabia Investments Holding subsidiary Rawaj are so far the only companies to close issuances of asset-backed securities this year.

But the pipeline is deep: Everyone from Sodic, Misr Italia and Edge Holding to EFG Hermes, Contact Financial Holding (formerly Sarwa Capital) and Raya have announced plans to securitize parts of their portfolios.

And the wider debt market is still thriving, as underscored most recently by last night’s announcement that Contact had closed its second EGP 2.5 bn sukuk offering in less than a year.

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; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.