EFG Hermes’ investment banking division, the leading investment banking franchise in Frontier Emerging Markets (FEM), announced today that it has successfully closed the sixth issuance, worth EGP 170 million, as part of Premium International for Credit Services’ (Premium) EGP 2 billion securitization program. This transaction marks the first issuance this year, following two transactions last year, as part of the two-year program.
Premium is the originator, assigning a portfolio to EFG Hermes, the securitization special purpose vehicle (SPV), backed by Premium customer credit portfolios. The EGP 170 million bonds, which consists of a single 10-month tranche, received a “Prime 1 Rating” for its last five issuances, the strongest amongst Egyptian bond issuances as quoted by Middle East Ratings and Investor Services (MERIS).
Mostafa Gad, Co-Head of Investment Banking, EFG Hermes, commented: “Our partnership with Premium is a reflection of the continued growth of the Egyptian debt capital market space, with the sixth transaction in the program highlighting an increasing utilization of the asset class. The success of this issuance is a testament to our team’s commitment to broadening our capacity for value creation, and expanding our offering to bring together a holistic set of services that incite growth for our partners and clients alike.”
The deal follows the Firm’s back-to-back conclusions of a securitized bond offering worth EGP 627.5 million for Pioneers Properties for Urban Development and EGP 790 million for EFG Hermes Corp-Solutions’ first issuance, both in December 2021. Both transactions come on the heels of the Firm’s successful advisory on valU’s first securitized bond offering, worth EGP 322.5 million, in September 2021.
EFG Hermes acted as the sole financial advisor, sole transaction manager & book-runner, underwriter, and arranger.