EFG Hermes Concludes Advisory on Bedaya Mortgage Finance’s Second Securitization Issuance Worth EGP 958 million

09 MARCH 2023

This issuance marks the second in a wider EGP 3 billion securitization program for Bedaya, with the first issuance in 2022 breaking ground as the first-of-its-kind for a real estate mortgage company in Egypt

Cairo, March 9, 2023

EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today that its investment banking division has successfully concluded the second, EGP 958 million securitized bond issuance for Bedaya Mortgage Finance, Egypt’s first non-bank online mortgage provider and one of EFG Hermes Holding’s non-bank financial institutions (NBFI). The bond, which comes as part of a wider EGP 3 billion securitization program, is backed by a mortgage portfolio assigned to EFG Hermes, the issuance’s special purpose vehicle (SPV).

The bond is comprised of six tranches with both fixed and variable yields, structured as follows:

Fixed Yield Tranches:

• Tranche A – Valued at EGP 15.6 million with a 13-month tenor and a credit rating of AA+ from Middle East Rating and Investors Service (MERIS)

• Tranche B – Valued at EGP 49.2 million with a 36-month tenor and a credit rating of AA from MERIS

• Tranche C – Valued at EGP 84.2 million with an 80-month tenor and a credit rating of A from MERIS

Variable Yield Tranches:

• Tranche A – Valued at EGP 93.0 million with a 13-month tenor and a credit rating of AA+ from MERIS

• Tranche B – Valued at EGP 262.9 million with a 36-month tenor and a credit rating of AA from MERIS

• Tranche C – Valued at EGP 453.0 million with an 84-month tenor and a credit rating of A from MERIS

Commenting on the issuance, Maie Hamdy, Managing Director - Debt Capital Markets at EFG Hermes said, “Over the years, our debt capital market practice has established a deep-rooted presence across a myriad of sectors, playing a pivotal role in bringing to market products that enable businesses to generate capital to grow and scale their operations. We’re not only proud to have closed yet another successful issuance in this key sector, but also to be capitalizing on the synergies inherent in the Firm’s business model to unlock growth opportunities across the Group, in line with its strategy to offer premium end-to-end financial services to its clients. With the securitized bond market particularly witnessing significant growth this year, the issuance garnered sizeable interest from investors based off the success of the first landmark issuance as well as the strength of Bedaya’s business model and vision to transform the real estate mortgage landscape.”

This issuance comes on the heels of Bedaya’s first issuance, worth EGP 651.2 million, which marked the first-of-its-kind transaction in the real estate mortgage space with tenors reaching up to c.10 years. The division also concluded several securitization issuances for EFG Hermes Holding’s subsidiaries over the course of 2022, including EFG Hermes Corp-Solutions’ second securitized bond issuance worth EGP 2.0 billion — its largest to date. EFG Hermes investment banking also concluded advisory on valU’s second and third securitized bond issuances during the year, worth EGP 532.6 million and EGP 854.5 million, respectively.

Tarek Abou-Gendia, CEO and Managing Director of Bedaya, said, “We are incredibly proud to be building on the success of our first issuance, which made headlines and garnered significant traction from regional and global investors when it first hit the market in 2022. The continued support of EFG Hermes enables us to realize growth opportunities, as we work to provide clients with the best possible service offering in the market by utilizing key debt instruments that will enable us to deliver on our ambitious targets for expansion.”

EFG Hermes acted as sole financial advisor, book-runner, underwriter, and lead arranger on the transaction. Dreny and Partners acted as legal advisor, KPMG acted as the auditor, while National Bank of Egypt (NBE), Commercial International Bank (CIB) and Arab African International Bank (AAIB) acted as the underwriting banks. NBE also acted as the custodian bank.

-Ends-

About EFG Hermes Holding

With a current footprint spanning 14 countries across four continents, EFG Hermes Holding (EGX: HRHO.CA – LSE: EFGD) has grown over 39 years of success to transform from a pure-play investment bank in MENA into an impact-driven universal bank in Egypt with the leading investment bank franchise in Frontier and Emerging Markets (FEM). Drawing on our proven track-record and a diverse team of talented employees, we provide a wide spectrum of financial services that include advisory, asset management, securities brokerage, research, and private equity to the entire FEM region. In our home country, we have the fastest-growing non-bank financial institutions (NBFI) platform with operations covering microfinance, leasing, factoring, Buy-Now Pay-Later (BNPL), digital payment solutions, mortgage finance and insurance.

And with its latest acquisition of majority stake in aiBANK, the Firm was able to provide commercial banking products and services.

Through its three verticals, the Investment Bank, Non-Bank Financial Institutions (NBFI) and Commercial Bank, the group is perfectly positioned to consistently bring disruptive financial products and services to the market space, offering a holistic portfolio that best serves its growing base of individual clients and businesses of all sizes.

Learn more about us at www.efghermes.com & stay connected with us on:

May El Gammal

Group Chief Marketing & Communications Officer of EFG Hermes Holding

E: melgammal@efg-hermes.com

Omar Salama

Communications Manager of EFG Hermes Holding

E: osalama@efg-hermes.com

The EFG Hermes Holding Public Relations Team

E: PublicRelations@efg-hermes.com

About Bedaya Mortgage Finance

Bedaya Mortgage Finance Company (Bedaya) is Egypt’s first non-bank mortgage provider offering digital mortgage financing facilities. It offers seamless mortgage financing solutions for clients looking to purchase residential and commercial properties in Egypt or to get financed using a pre-owned personal or business asset as collateral. With the fastest turnaround time in the market and a seamless digital mortgage platform, Bedaya works with clients as true partners to deliver tailored mortgage solutions to its ever-growing client base. Bedaya was founded in 2019 as a joint venture between EFG Hermes, GB Capital, and Talaat Moustafa Group.

For further information about Bedaya, please visit https://www.bedayamortgage.com/

Note on Forward-Looking Statements

In this press release, EFG Hermes Holding may make forward looking statements, including, for example, statements about management’s expectations, strategic objectives, growth opportunities and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Hermes Holding’s belief regarding future events, many of which, by their nature are inherently uncertain and are beyond management’s control and include among others, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending and future legislation, regulations and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made.