EFG Hermes Concludes Advisory on Hermes Securities Brokerage Company’s (HSB) Fifth EGP 600 Million

Cairo 29 Apr 2024:

 EFG Hermes, an EFG Holding company and the leading investment bank in the Middle East and North Africa (MENA), announced today that its investment banking division has successfully closed the issuance of a senior unsecured short-term note for the Hermes Securities Brokerage Company (HSB), a wholly owned subsidiary of EFG Holding, in an EGP 600 million transaction. This marks the fifth issuance for the company and the second in an approved two-year program worth EGP 2 billion.

The national scale long-term senior unsecured entity rating of “BBB+” with a Stable Outlook and the short-term senior unsecured issuer rating of “P2” to HSB have been affirmed by the Middle East Ratings and Investor Services (MERIS). The 12-month bullet note will have a variable rate coupon paid after 6 months then at the end of the bond, and the proceeds will be used to diversify HSB’s funding sources.

Maged El Ayouti, Co-Head of Investment Banking at EFG Hermes, commented on the issuance saying, “We are pleased to close the fifth bond issuance for HSB, and the second in its two-year EGP 2 billion approved program. The issuance is a continuation of our ability to leverage the division to serve the Group’s subsidiaries, whether Valu, HSB, or EFG Corp-Solutions, in raising capital in the Egyptian Debt Capital Market. As the foremost investment bank in the MENA region’s DCM space, EFG Hermes has spearheaded transformative financial solutions, catalyzing growth and innovation within the financial ecosystem and unlocking local and international investors’ access to the region’s investment products.”

HSB’s fifth issuance comes as the latest of several consecutive transactions that the Firm has successfully concluded in the debt capital market space. The investment banking division recently closed various successful deals, including a securitized bond worth EGP 421 million for Palm Hills Developments, an EGP 159.2 million issuance for Qasatli, a bond issuance worth EGP 472 million for Egyptian Mortgage Finance Company (EMRC), and an issuance worth EGP 958 million for Bedaya Mortgage Finance. It also completed an issuance worth EGP 953.1 million for Valu, an EGP 805.5 million for Madinet Masr (previously Madinet Nasr for Housing and Development), and an issuance worth EGP 998.5 million for Al Taamir Mortgage Finance – Al Oula.

EFG Hermes acted as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger for the issuance.

About EFG Holding

EFG Holding (EGX: HRHO.CA – LSE: EFGD) is a trailblazing financial institution that boasts a remarkable 40-year legacy of success in nine countries spanning three continents. Operating within three distinct verticals — the Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and Commercial Bank (aiBANK) — the company provides a comprehensive range of groundbreaking financial products and services tailored to meet the needs of a diverse clientele, including individual clients and businesses of all sizes.

EFG Hermes, the leading investment bank in the Middle East and North Africa (MENA), offers an extensive array of financial services, encompassing advisory, asset management, securities brokerage, research, and private equity. In its domestic market, EFG Holding serves as a universal bank, with EFG Finance emerging as the fastest-growing NBFI platform, comprising Tanmeyah, a leading provider of financial services in Egypt with a concerted focus on the micro and small enterprise segments, EFG Corp-Solutions, which provides leasing and factoring services, Valu, a versatile financial technology powerhouse, PayTabs Egypt, a digital payment platform, as well as Bedaya for mortgage finance and Kaf for insurance. Furthermore, the company delivers commercial banking solutions through aiBANK, a leading provider of integrated retail, corporate, and Islamic banking products in Egypt.