Back to the complete issue
Sunday, 19 February 2023

Palm Hills closes EGP 638 mn securitization

Palm Hills Developments (PHD) has closed an EGP 638 mn securitized bond issuance, according to a joint statement (pdf) from Palm Hills and EFG Hermes, the sole financial advisor on the sale.

About the issuance: The issuance’s three tranches have tenors of 13, 36, and 84 months and ratings ranging from AA+ to A from the Middle East Rating & Investors Service (MERIS). The issuance brings PHD’s securitized gross receivables to a total of EGP 7.2 bn since its securitization program began in 2016, co-CEO and Managing Director Tarek Tantawy said in the statement.

Who bought in? Aside from the underwriters for the transaction, the statement named Al Baraka Bank as a subscriber.

Advisors: Our friends at EFG Hermes ran the show, acting as sole financial advisor, lead arranger, bookrunner, and underwriter on the issuance. National Bank of Egypt and Banque du Caire acted as underwriting banks, with BdC also acting as the subscription bank. Banque Misr acted as transaction custodian. Our friends at ALC Alieldean Weshahi & Partners acted as legal advisors while KPMG acted as the auditor.

More than EGP 6.8 bn worth of bonds have been sold so far in 2023, down from EGP 7.2 bn in the same period last year, according to data tracked by Enterprise. Among other firms planning issuances for this quarter are EFG Hermes’ ValU and Contact Financial Holding. Companies raised EGP 45.4 bn from securitized bond issuances in 2022, almost three times the EGP 15.8 bn sold the year prior.

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.