The transaction is part of a wider EGP 3.0 billion securitization program kickstarted by the Firm for MNHD in 2022 to monetize its receivables portfolio and unlock growth capital

Cairo, March 5, 2023

EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today that its investment banking division successfully closed an EGP 805.5 million securitized bond issuance for leading Egyptian real estate developer Madinet Nasr for Housing and Development (MNHD) — the second in an EGP 3.0 billion securitization program. 

The bond is backed by a receivables portfolio of EGP 1.2 billion and is comprised of three fixed-interest tranches, with all tranches disbursed as “pass-through” proceeds of the portfolio. The tranches are structured as follows:

• Tranche A – valued at EGP 241.7 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 310.1 million, with a tenor of 36 months, and a credit rating of (AA) from MERIS

• Tranche C – valued at EGP 253.7 million, with a tenor of 60 months, and a credit rating of (A) from MERIS

Maged El Ayouti, Managing Director and Deputy Head of Investment Banking at EFG Hermes, commented: “We are delighted to have partnered once again with MNHD, and to have successfully delivered its largest capital market transaction, supporting management as they move forward with executing their ambitious expansion plans. Leveraging our team’s unrivaled placement and execution capacities, the issuance comes on the heels of a series of successful capital market issuances for our clients in the Egyptian market — a testament to our relentless efforts to continue supporting the growth of the capital markets in the prevailing environment.”

This transaction is the latest in a series of successful debt deals closed by EFG Hermes for MNHD, with the first being the real estate player’s debut securitized bond in 2019, followed by an EGP 750 million sale and leaseback agreement between EFG Hermes Corp-Solutions and MNHD in 2021. Last year, the division successfully closed the first, EGP 300 million issuance as part of this wider EGP 3 billion program underscoring the group’s unmatched and ability to tailor bespoke solutions for clients through its universal financial service portfolio. 

Abdallah Sallam, Executive President and Managing Director at MNHD, commented on the partnership, saying: “We’re pleased to be working with EFG Hermes to close this second issuance, which once again garnered significant interest from investors due to their confidence in our robust growth story, having delivered exceptional results in 2022 with gross contracted sales growing over three-fold compared to last year. Monetizing our portfolio forms the cornerstone of our strategy to deliver units ahead of schedule and expand our operational footprint to capture a larger share of demand within the rapidly growing real estate market. Our partnership with the leading investment bank franchise in FEM will carve out a path for further growth, enabling us to maintain our standing as the foremost provider of premium residential, commercial, and administrative properties in Egypt.”

EFG Hermes’ investment banking division leverages extensive DCM experience in the real estate space, having closed several back-to-back securitization deals for developers in recent years. Most recently, the division concluded Palm Hills Development’s EGP 638 million securitized bond following Misr Italia Properties’ second securitization issuance in a transaction worth EGP 986 million in 2022, a follow-on from the close of the first, EGP 794 million issuance in 2021. The division also advised on Pioneers Properties for Urban Development’s second issuance worth EGP 425 million and went on to complete a third issuance for the company in November 2022, worth EGP 292.5 million. 

EFG Hermes acted as the sole financial advisor, lead arranger, bookrunner, and underwriter on the issuance. National Bank of Egypt (NBE) participated in this transaction alongside Arab African International Bank (AAIB) and Commercial International Bank (CIB) as underwriters, with CIB also acting as custodian bank. Dreny and Partners was legal advisor on the transaction.

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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. 

Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Oman | Jordan | Pakistan | UK | Kenya | USA | Bangladesh | Nigeria | Vietnam | Singapore 

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 

melgammal@efg-hermes.com 

Omar Salama

Communications Manager of EFG Hermes Holding

osalama@efg-hermes.com 

The EFG Hermes Holding Public Relations Team

PublicRelations@EFG-HERMES.com 

About Madinet Nasr for Housing and Development (MNHD)

Madinet Nasr for Housing & Development (MNHD) is a leading Egyptian urban developer. Since inception, the company has initiated and completed a number of key developments, including the majority of the Nasr City district in the Greater Cairo Area, which covers an area of more than 40 million square meters and is home to 3 million people. MNHD’s land bank includes 3.6mn sqm in a prime location inside Cairo across from Cairo International Airport and 5.5mn sqm in a strategic location on the Suez Road. You can learn more about us on our website at www.mnhd.com  

Dena Habib

Vice President Corporate Relations

MNHD 

4, Youssef Abbas St.

Nasr City, Cairo 

Tel: +2 (02) 2400-6210

dhabib@mnhd.com

investor.relations@mnhd.com

Salah Katamish

SVP Strategy & Investments

MNHD 

4, Youssef Abbas St.

Nasr City, Cairo 

Tel: +2 (02) 2400-6207

skatamish@mnhd.com

Abdallah Sallam 

President and CEO  

MNHD 

4, Youssef Abbas St. 

Nasr City, Cairo

Tel: +2 (02) 2400-6207

asallam@mnhd.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’ 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.