EFG Hermes Concludes Advisory on EGP 450 Million Issuance for EFG Corp-Solutions, the Second in its EGP 3 Billion Program

Cairo 14 Oct 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 successfully concluded advisory on the second issuance valued at EGP 450 million, with a tenor of five years, for EFG Corp-Solutions, a subsidiary of EFG Finance, EFG Holding’s Non-Bank Financial Institutions (NBFI) platform, and one of Egypt’s leading leasing and factoring companies. The issuance comes as part of the wider EGP 3 billion securitization program for the leasing and factoring player.

EFG Hermes acted as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger for the issuance. Al Ahli Bank of Kuwait – Egypt (ABK) also acted as an underwriter on the transaction.

Maged El Ayouti, Co-Head of Investment Banking at EFG Hermes, commented on the issuance, saying, “We are delighted to have played a key role in the successful conclusion of this transaction for EFG Corp-Solutions – the second issuance for the company that EFG Hermes has carried out this year – showcasing the dedicated collaboration and robust synergies within EFG Holding. In the prevailing high-interest rate environment, the domestic capital market remains quite active and liquid for local currency bond issuances, which are attracting investor demand, and enabling corporates and NBFIs to tap the market to raise capital that would fund growth plans.”

Talal El Ayat, CEO of EFG Corp-Solutions, added, “We are thrilled with the success of the second issuance. This issuance represents another noteworthy landmark for EFG Corp-Solutions and showcases our ability to draw in a wide range of investors, signaling the market’s confidence in our business model. This achievement also serves as a crucial step in our strategy to offer the highest quality leasing and factoring solutions to a broader segment of customers. We are excited to build on this successful partnership as we tackle expanding demand for the financing services industry in Egypt.”

This transaction comes as the latest in a string of debt issuances advised on by EFG Hermes in the region. EFG Hermes recently concluded advisory on a short-term note issuance, valued at EGP 433 million, for a one-year term for EFG Corp-Solutions back in June. It also concluded advisory on 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, marking the fifth issuance for the company and the second in an approved two-year program worth EGP 2 billion. EFG Hermes also recently advised Valu, MENA’s leading universal financial technology powerhouse, on its tenth securitized bond issuance worth 1.2 billion as part of the approved extended securitization program worth EGP 9.0 billion.

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 eight countries spanning two continents. Operating within three distinct verticals — the Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and Commercial Bank (Bank NXT) — 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 as well as Fatura, a technology-backed B2B marketplace. Furthermore, the company delivers commercial banking solutions through Bank NXT, a leading provider of integrated retail, corporate, and Islamic banking products in Egypt.