EFG Hermes, the leading financial services corporation in frontier emerging markets (FEM), announced today the successful conclusion of its debt advisory to Orascom Development Egypt (ODE), on a new 7 year, USD 265 million financing. 

Orascom Development Egypt, the largest subsidiary of Orascom Development Holding, a leading developer of fully integrated destinations, will utilize the debt facility to refinance and upsize its outstanding debt. The financing package comprises up to USD215 million to refinance outstanding balances, and up to USD50 million to be directed to fund the growth plans at the discretion of the Company during a 2 year availability period. The debt has a 7 year tenor including a 2.5 years grace period to accommodate for the covid-19 situation and to permit for capex spending when the situation stabilizes.

EFG Hermes acted as sole financial advisor, lead manager, global coordinator and bookrunner for the transaction. 

Commenting on signing of the transaction, Maged El Ayouti, Managing Director at EFG Hermes investment banking commented, “We are delighted to have advised ODE on this milestone transaction which was very well received by the market as reflected in lenders’ participation in the deal. This is a testament to the strong fundamentals that underpin the credit profile of ODE as well as the significant appetite in the market from domestic and international institutions to lend high quality Egyptian companies. We value our partnership with ODE and are proud to play a leading role to enable ODE to secure enhanced terms for its debt in the current market environment.”

Since the beginning of 2020, EFG Hermes’ Investment Banking Division concluded sizable transactions in the face of challenging market conditions successfully, advising on seven debt capital markets transactions in Egypt year to date worth an aggregate over EGP9 billion. a testament to the momentum that the firm’s DCM franchise has gained over the past few years.

CIB, Banque Misr, Banque Du Caire, and HSBC are acting as mandated lead arrangers. CIB is also acting as the facility agent.

MHR & Partners acted as legal counsel for ODE, while Helmy, Hamza & Partners acted as legal counsel to the banks.