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Wednesday, 22 June 2022

EFG Hermes closes the first securitization for an Egyptian mortgage firm

EFG Hermes has closed an EGP 651.2 mn securitized bond issuance on behalf of mortgage provider Bedaya, it said in a statement (pdf) yesterday. The eight-tranche bond is backed by a mortgage portfolio of around EGP 1.02 bn, and is the first ever for a real estate mortgage firm in Egypt, according to the statement. This is the first issuance of a EGP 3 bn securitization program, which EFG expects to complete in the next three years depending on the business’ operational needs, sources tell us.

Who bought in? The National Bank of Egypt (NBE), Banque du Caire (BdC), and Baraka Bank, Mai Hamdy, head of debt capital markets at EFG, told us.

What they said: “We are proud to have advised on the first real estate mortgage securitization transaction in the Egyptian market, which has been met with extensive interest from investors, bearing in mind the almost 10-year tenor notwithstanding the current market uncertainty,” Hamdy said.

By our count, Bedaya’s offering takes the total value of securitized bonds sold this year to almost EGP 11.5 bn. That’s nearly three-quarters of the total value of EGP 15.8 bn taken to market last year.

Advisors: EFG Hermes acted as the sole financial advisor, sole transaction manager, bookrunner, underwriter, and arranger on the issuance. NBE and BdC acted as underwriters, while Baraka Bank was the subscription bank. The legal advisor for the issuance was Dreny and Partners and the auditor was KPMG.

About Bedaya: The mortgage provider is a joint venture between EFG Hermes Holding, Talaat Moustafa Group, and GB Capital.

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