Hermes Securities Brokerage (HSB) has closed a EGP 550 mn securitized bond issuance managed by EFG Hermes, according to a company statement (pdf). This is the third tranche in the brokerage’s EGP 2 bn two-year program, and the first it has issued this year. The one-year securities were rated BBB+ with a stable outlook by ratings agency MERIS.

The corporate bond program: The EFG Hermes unit began the program with a EGP 400 mn issuance of one-year bonds in December 2019, ending a decade-long dry spell for corporate bond issuances. New regulations introduced in 2018 now allow joint-stock and limited liability companies, banks, financial institutions, and SMEs to sell short-term debt instruments with maturities of less than two years to retail and institutional investors. Then it sold a second EGP 500 mn tranche of unsecuritized bonds late last year.

Advisors: EFG Hermes acted as the financial advisor, transaction manager, and bookrunner, underwriter and arranger. Zulficar & Partners provided legal counsel.