Back to the complete issue
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.

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.