EFG Hermes’ investment banking division، the leading investment bank franchise in Frontier and Emerging Markets (FEM)، announced today the successful close of an EGP 292.5 million securitized bond issuance for real estate powerhouse Pioneers Properties for Urban Development and its affiliates — the third issuance in a wider EGP 3.0 billion program. The bond is backed by a receivables portfolio of some EGP 490.7 million، assigned to EFG Hermes Holding’s Financial Group for Securitization، the issuance’s Special Purpose Vehicle (SPV).  The bond is comprised of three tranches، which will be disbursed contingent on the proceeds of the portfolio: Tranche A – valued at EGP 41 million، with a tenor of 13 months، and a credit rating of AA+ (sf) from Middle East Ratings and Investor Services (MERIS)  Tranche B – valued at EGP 73.1 million، with a tenor of 3 years، and a credit rating of AA (sf)1 from MERIS Tranche C – valued at EGP 178.4 million، with a tenor of 7 years، and a credit rating of A (sf)1 from MERIS Commenting on the transaction، Maie Hamdy، MD، Debt Capital Markets (DCM) at EFG Hermes’ Investment Banking division، said: “We’re thrilled to be deepening our long-standing partnership with Pioneers today. The subscription underscores investors’ confidence in the company and the success the first and second issuances of this EGP 3 billion program have garnered. The transaction bookends a series of landmark DCM deals we’ve completed this year، including the market’s first ever future flow securitized bond — an EGP 800 million issuance for education provider CIRA Education. As we near the end of 2022، we could not be prouder of the milestones we’ve hit in Egypt’s ever-growing DCM space، and we plan to continue to unlock opportunities that enable our partners to finance growth plans through innovative، diverse، and value-accretive financing solutions.” EFG Hermes acted as the sole financial advisor، sole transaction manager and book-runner، underwriter، and arranger on the issuance. National Bank of Egypt (NBE)، alongside Commercial International Bank (CIB)، acted as underwriters، with CIB also acting as the custodian bank. The legal advisor for the issuance was Baker & McKenzie and the auditor was KPMG. Waleed Zaki، CEO of Pioneers Properties for Urban Development، also commented on the transaction، saying: “The success of this third issuance speaks volumes to the operational and financial strength of Pioneers Properties for Urban Development’s affiliates، as well as the trust we’ve built in the market. We are incredibly proud to be strengthening our longstanding relationship with EFG Hermes، leveraging its unparalleled capabilities to support our growth plans. The transaction enables us to be nimble in an uncertain market، to free up capital and expand the business.” This issuance comes on the heels of EFG Hermes’ successful conclusion of Egypt’s first future flow securitized bond for CIRA Education، valued at EGP 800 million; Pioneers Properties for Urban Development’s second securitization issuance valued at EGP 425 million; Bedaya Mortgage Finance’s first securitization issuance worth EGP 651.2 million; an EGP 300 million securitization issuance for Madinet Nasr for Housing and Development (MNHD); and Premium International for Credit Services’ sixth issuance valued at EGP 170 million.    Waleed Zaki Pioneers Properties for Urban Development EFG Hermes Maie Hamdy