EFG Hermes, Egypt’s biggest investment bank, said Sunday that it has closed a $26.2 million (EGP 805.5 million) securitised bond issuance for real estate developer Madinet Nasr for Housing and Development (MNHD), the second in an EGP 3.0 billion securitisation program.
The bank said the transaction is the latest in a series of debt issuances closed by its investment banking division for MNHD, with the first being the real estate company’s debut securitised bond in 2019. The bond is backed by a receivables portfolio of EGP 1.2 billion and is comprised of three fixed-interest tranches—tranche A is valued at EGP 241.7 million, tranche B is valued at EGP 310.1 million and tranche C is valued at EGP 253.7 million.
“Monetising our portfolio forms the cornerstone of our strategy to deliver units ahead of schedule and expand our operational footprint to capture a larger share of demand within the rapidly growing real estate market,” said Abdallah Sallam, the Executive President and Managing Director at MNHD.
EFG Hermes’ investment banking division leverages extensive DCM experience in the real estate space, having closed several back-to-back securitisation deals for property developers in recent years. Recently, the division concluded Palm Hills Development’s EGP 638 million securitised bond following Misr Italia Properties’ second securitisation issuance in a transaction valued at EGP 986 million in 2022.
The bank’s investment banking unit also advised on Pioneers Properties for Urban Development’s second issuance worth EGP 425 million and complete a third issuance for the company last November 2022, worth EGP 292.5 million.
EFG Hermes acted as the sole financial advisor, lead arranger, bookrunner and underwriter on the issuance.
