EFG Hermes Holdings SAE

01/13/2021 | Press release | Distributed by Public on 01/13/2021 01:29

EFG Hermes concludes EGP 700 million first issuance of Amer Group, Porto Group, and Qasatli securitization program.

EFG Hermes, the leading financial services corporation in Frontier Emerging Markets (FEM), announced today the successful closing of the first issuance in an EGP 6.5 billion securitization program for Amer Group, Porto Group, and Qasatli. EFG Hermes acted as sole arranger and financial advisor on the EGP 700 million issuance, which was covered more than one time and is part of a program for a portfolio of receivables worth EGP 911 million from five originators, including Amer Group's four subsidiaries and mortgage finance company Qasatli.

The securitization transaction consists of three tranches, with the first holding a maturity of 13 months, the second up to 36 months, and third up to 60 months. Middle East Ratings and Investor Services (MERIS) assigned the first tranche a credit rating of AA+, with the second and third tranches receiving designations of AA and A, respectively.

'We are pleased to once again be partnering with Amer Group, one of Egypt's leading real estate developers. The transaction follows on the heels of the successful close of a securitization program on behalf of Talaat Moustafa Group, bringing total debt issuances for the team to nine worth EGP 6 billion since the beginning of 2020. The success only serves to underscore our commitment to expanding our securitization capabilities as the asset class continues to gain traction in Egypt,' said Mostafa Gad, Co-Head of EFG Hermes' Investment Banking Division.

The program was approved in December 2020 for nine different originators: Amer Group's four subsidiaries, four subsidiaries of Porto Group, and Qasatli. Arab African International Bank (AAIB), Commercial International Bank (CIB), and Suez Bank acted as underwriters, with CIB acting as custodian