The second bond issue of EGP 2 billion for EFG Hermes Financial Solutions, the top provider of financial leasing and factoring solutions in Egypt and wholly owned by EFG Hermes Hermes Holdings, was successfully completed, according to EFG Hermes, the leading investment bank in emerging and frontier markets.
It should be noted that this issue is secured by a collection of notes receivable with a total estimated value of 2.
9 billion pounds, or 24 lease agreements, are involved.
Three tranches make up the issuance: the first, worth EGP 260 million, has a 13-month maturity; the second, worth EGP 890 million, has a 36-month maturity. The Middle East Company assigned the two tranches a local credit rating of AA+ and AA, respectively. MERIS, or Credit Rating and Investors Service
The third tranche has a value of 850 million pounds, a 72-month maturity date, and a local credit rating of A- creditworthiness from Meris.
This deal fits into the plan EFG Hermes has developed for Financing Solutions to increase its clientele across the range of industries in which it conducts business.
The customer base of the company is currently diverse, with 20% of its clients coming from small and medium-sized businesses and 80% from large institutions and corporations. However, the company intends to increase the percentage of small and medium-sized businesses in its customer base over the next few years. Real estate development, logistics, shipping, printing and packaging, education, and healthcare are among the industries the company’s clients work in.
The financial leasing and factoring operations of EFG Hermes Financial Solutions were placed second in the Egyptian market, with the market share of these operations reaching 12 percent, according to the Financial Supervisory Authority’s report published in July 2022. 52% since the start of the year, with an anticipated 5. The total value of contracts. eight trillion pounds. . The company’s market share in factoring reached 13. 99%, making 2 cheap papers available.
4-billion-pound range.
The completion of a number of deals by EFG Hermes in 2022, including the provision of advisory services, the completion of the second issuance of securitization bonds for the Pioneers Properties for Urban Development group of companies, and the completion of the first issuance of securitization bonds for the Bidaya real estate finance company and the Bidaya company, precedes the completion of this deal.
Along with finishing the sixth issue of Premium International’s securitization bond programme and Madinet Nasr for Housing and Development, the business also completed the second issue of securitization bonds for its subsidiary Valeo. After the success of the first issue, which totaled 750 million pounds, this deal represents EFG-Hermes’ second offering for financing solutions. .
The second bond offering, totaling EGP 2 billion, is successfully completed by Hermes Holding.
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