EFG Hermes، the leading investment bank franchise in Frontier and Emerging Markets (FEM)، and Palm Hills Developments (PHD)، a leading real estate developer in Egypt، jointly announced today the successful closing of an EGP 638 million securitized bond. The issuance is structured as follows:    Tranche A – valued at EGP 105.27 million with a tenor of 13 months and a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS) Tranche B – valued at EGP 232.87 million with a tenor of 36 months and a credit rating of AA from MERIS Tranche C – valued at EGP 299.86 million with a tenor of 84 months and a credit rating of A from MERIS Maie Hamdy، Managing Director - Debt Capital Markets at EFG Hermes commented: “We are thrilled to be concluding this transaction for the Egyptian real estate giant today. The offering attracted significant interest from a multitude of investors، capitalizing both on the unique structure and premium pricing of the bond as well as the trust PHD has built with investors since its launch. As we continue to broaden our capabilities in the debt capital market space، we’re committed to developing bespoke solutions for longstanding partners such as PHD to unlock the full potential of our Group’s financial service universe.” Commenting on the issuance، Tarek Tantawy، Co-CEO and Managing Director of Palm Hills Developments ، said: “We are delighted to be building on our long-term relationship with EFG Hermes through the launch of this successful securitized bond offering. With this transaction، we have securitized Gross Receivables worth EGP7.2 billion since we started the securitization program back in 2016 as part of our strategy to monetize our receivables portfolio and expedite delivery timelines for clients. Our strategy continues to bear fruit as seen during 2022، with further acceleration in the pace of construction and development across our project portfolio.  In 2022، valU، MENA’s leading lifestyle-enabling fintech platform، extended convenient payment solutions on summer home maintenance fees for PHD clients in Hacienda Bay and Hacienda White in addition to Palm Hills October. This comes part and parcel of the Group’s efforts to unlock synergies across the board ensuring its corporate and retail clients receive a one-stop-shop experience for all their financial needs.  2022 saw EFG Hermes’ Investment Banking division conclude several securitization deals in the Egyptian real estate market، including the EGP 986 million second issuance for Misr Italia Properties and Premium International for Credit Services’ seventh issuance worth EGP 200.6 million. It has continued to break ground in the space since launching the platform، having most recently concluded CIRA Education’s EGP 800 million future flow securitization — the first-of-its kind in the market.    EFG Hermes acted as sole financial advisor، lead arranger، bookrunner، and underwriter on the issuance. National Bank of Egypt (NBE)، and Banque du Caire (BdC)، acted as underwriting banks، with BdC also acting as subscription bank. Banque Misr acted as transaction custodian and Al Baraka Bank was one of the subscribers. ALC Law Firm acted as the legal advisor while KPMG acted as the auditor.