EFG Hermes said Tuesday that its investment banking division has closed the issuance of a senior unsecured short-term note for the Hermes Securities Brokerage Company (HSB) in a transaction worth $8.1 million (EGP 250 million).
The issuance by HSB, a wholly owned subsidiary of EFG Hermes Holding, is the fourth and the first in a newly approved two-year program worth EGP 2 billion. The 12-month bullet note will carry a fixed rate coupon paid at the end of the bond, with proceeds aimed at diversifying HSB’s funding sources.
The Middle East Ratings and Investor Services (MERIS) affirmed the national scale long-term senior unsecured entity rating at “BBB+” with a stable outlook and the short-term senior unsecured issuer rating of “P2” to HSB.
“Our expansive presence in Egypt’s DCM space perfectly positions us to continue bringing in-demand, quality asset classes to the market, enabling our clients to capitalize on alternative, value-accretive funding solutions when looking to scale their operations, while unlocking access for local and global investors to the region’s most lucrative investment prospects,” said Mostafa Gad, Co-Head of Investment Banking at EFG Hermes.
HSB’s fourth issuance is part of a series of several back-to-back transactions EFG Hermes has successfully concluded in the debt capital market space. Recently, the investment banking division concluded advisory on valU’s fourth securitisation issuance worth EGP 856.5 million, Premium International for Credit Services’ eighth, EGP 193.7 million securitised bond issuance and Bedaya Mortgage Finance’s second EGP 958 million securitisation issuance.
The division also advised on the EGP 638 million securitisation issuance for Palm Hills Development, EGP 805.5 million issuance for Madinet Nasr for Housing and Development and Al Taamir Mortgage Finance – Al Oula’s first securitiSation issuance worth EGP 998.5 million.
