EFG Hermes advises EMRC on EGP472m securitised bond issuance

EFG Holding’s investment banking unit, EFG Hermes, has concluded advisory Egyptian Mortgage Refinance Company’s (EMRC) EGP472m securitised bond issuance, the first issuance in the company’s EGP3bn securitisation programme.

The landmark securitisation programme makes EMRC the first refinance mortgage company to securitise portfolios for mortgage companies in the Egyptian market.

EMRC, which operates as a refinance mortgage company, acquired the securitised portfolio from Bedaya Mortgage Finance, which assumed the role of the transaction’s servicer.

“This milestone marks an important advancement for both EMRC and the primary mortgage market in Egypt. By securitizing portfolios for mortgage companies, we aim to enhance their liquidity, strengthen capital structure and promote accessibility for homeowners and prospective buyers,” said Ehab Abou Ali, managing director of EMRC.

The issuance is structured as tranche A – valued at EGP66.1m with a tenor of 13 months, tranche B – valued at EGP193.5m with a tenor of 36 months and tranche C – valued at EGP212.4m with a tenor of 69 months.

“The successful completion of the EMRC securitisation issuance underscores EFG Hermes’ commitment to driving innovation and progress within the financial market,” said Maie Hamdy, the managing director of Debt Capital Markets at EFG Hermes.

“EFG Hermes continues to reinforce its role as a pioneer in Egypt’s debt capital market, advising on an extensive variety of securitisation deals in the country and garnering widespread investor interest.”

This issuance comes on the heels of EFG Hermes’ successful closing of an EGP472.5m securitised bond for Palm Hills Development and an EGP958m issuance for Bedaya Mortgage Finance.

The investment banking division also advised Madinet Masr (previously Madinet Nasr for Housing and Development) on its EGP805.5m securitised bond issuance, Al Taamir Mortgage Finance – Al Oula’s EGP 998.5m issuance, Valu’s EGP857m issuance as well as an EGP986m bond issuance for Misr Italia Properties.

EFG Hermes and Al Ahli Pharos acted as the transaction’s bookrunners, underwriters and co-financial advisors while the National Bank of Egypt and Arab African International Bank were underwriting banks.

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