EFG Hermes subsidiary to list securitized bonds on EGX next week
Two tranches of a securitized bond issuance by EFG Hermes’ Financial Group For Securitization worth EGP 211 mn will begin trading on the EGX on 21 September, the financial services firm announced (pdf) Thursday. The firm will list 2.1 mn in 10-month bonds with a par value of EGP 100 after getting EGX approval.
About the issuance: The 1.89 mn of tranche A bonds will pay a yield of 9.5% with the first installment to be paid after four months and subsequent installments every three months. The 211k tranche B bonds will carry a fixed annual rate of 10.76%, with installments to be paid according to the same timeline. Both tranches mature on 26 May 2022. The Arab African International Bank acted as underwriter for the listing.
No more than 90% of the bonds will be offered to institutional investors, while 10% will be reserved for retail investors, as per the Financial Regulatory Authority's regulations.