This issue aims to provide the necessary funding to support the expansion plans of EFG Hermes Financing Solutions, which specializes in financial leasing and factorization solutions during the year.
Cairo: EFG Hermes announced that the promotion and underwriting division of the leading investment bank in emerging and border markets has managed to complete the first bond issue worth £ 500 million to benefit EFG Hermes Financial Solutions, the leading company in the field of financial leasing and factoring solutions in Egypt and is wholly owned by EFG Hermes Holdings. This transaction is the first in a series of issues within a £ 3 billion bond issue program.
It is noteworthy that the bonds obtained a local credit rating of “A-” for creditworthiness from the Middle East Credit Rating and Investor Service “MERIS”, as it consists of two portions: the first portion of £ 450 million with an expiration date. period of 24 months, and the second tranche of £ 50 million With a maturity period of 24 months.
In this context, Mai Hamdi, Managing Director of the Debt Market Sector at EFG Hermes, expressed her happiness to provide advisory services to EFG Hermes for financing solutions during the company’s first bond issue, highlighting the growth in demand for alternative financing solutions in the local market. especially in light of the decisions The Central Bank of Egypt’s successive increase in interest rates to curb inflationary pressures. She pointed out that the demand for bonds is seeing a remarkable recovery in the debt markets around the world, which coincides with the return of investors to rely on fixed income instruments. She emphasized her pride in the company’s ability to respond quickly and flexibly to market changes, and stressed that the group continues its efforts to develop the package of services it provides in the debt markets by providing advisory solutions specifically designed to the needs of its ever-growing customer base, and to suit both the extent of their acceptance of risks and the ever-changing market fundamentals.
In turn, Talal Al-Ayyat, CEO of EFG-Hermes for Financing Solutions, expressed his congratulations on the successful completion of this transaction, especially as it represents a new achievement added to the company’s performance record, enabling him set to attract. the attention of investors due to its leading position and ability to exploit promising growth opportunities. Al-Ayyat added that this transaction is an integral part of the company’s strategy to consolidate its position in the market, as well as its role in financing and achieving business growth objectives, leading to the diversification of the package of services provided by the company is provided, whether in the field of financial leasing or factoring, and expanding the base of its clients looking for Alternative sources of financing.
This transaction falls within the framework of the strategy adopted by EFG Hermes for Financing Solutions to expand its client base in the various sectors in which it operates. The company’s customer base is currently characterized by diversity, as its customers represent 20% of small and medium enterprises, while large institutions and companies represent 80%, knowing that in the coming years the company aims to expand its customer base of small and medium enterprises brei. . The sectors in which the company’s clients operate include real estate development, logistics, marine, printing and packaging, education and healthcare. In terms of factor services, the majority of police clients from small and medium enterprises work in the trade and distribution sector, followed by the transport and logistics sector. In terms of financial leasing, the education and real estate development sector has the largest share, and the healthcare sector comes in third place.
According to the Financial Supervisory Authority’s report released in March 2022, EFG’s financial leasing activities ranked Hermes Financial Solutions second in the Egyptian market, with a market share of 12.04% since the beginning of the year.
The total contracts are about £ 2.6 billion. In terms of factorization, the company has also ranked second in the market since the beginning of the year, increasing its market share to 15.33%, bringing the volume of discounted securities to £ 1.015 billion.
It is noteworthy that EFG Hermes for Financial Solutions managed to complete the first issue of securitization bonds with a total value of 790 million pounds, which is a safe issue with a portfolio of notes receivable at a value of approximately 815 , 1 million pounds. This issue received a good rating from the Middle East Credit Rating and Investor Service (MERIS) and was very popular, confirming the strength of the company’s financial position and its record of success in the market, despite the fact that it still ‘ is a relatively young company. in the field of financial leasing. It also enjoys strong financial and strategic support from EFG Hermes Holding, which has enabled the company to benefit from the integration and synergy between the various operations of the company’s business model.
This transaction comes after the success of EFG Hermes with the completion of the first issue of the securitization bonds of the Bidaya real estate financing company with a total value of 651.2 million pounds, as well as the completion of the sixth issue, amounting to 170 million £ 300 million in favor of “Premium International” for credit services last January, in addition to The first issue of securitization bonds in favor of “Madinat Nasr for Housing and Development” worth £ 300 million. This transaction also comes after the success of EFG Hermes in December 2021 to complete the first issue of securitization bonds for “Pioneers Properties for Urban Development” amounting to 627.5 million pounds, as well as the completion of the first issuance of securitization bonds for “Mr. Italia ”with a value of 794 million pounds.
EFG Hermes acted as the financial advisor, manager, regulator, promoter and underwriter for the mortgage issuance transaction. The law firm (Dreny and Partners) acted as the legal advisor for the transaction, and (KPMG) as the auditor, while the Commercial International Bank (CIB) acted as the underwriter in this transaction.
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About EFG Hermes Holding
EFG Hermes Holdings (HRHO.CA Code: EGX; EFGD: LSE) has a direct presence in 13 countries across four continents as the company has its origins in the Egyptian market and has expanded over 38 years of continuous performance to transform from an investment bank in the Middle East region only to a Comprehensive bank in Egypt and the leading investment bank in emerging and border markets. The company has a professional team capable of providing a unique package of financial and investment services, ranging from promotion, underwriting, asset management, stockbroking, research and direct investment in emerging and frontier markets. In the Egyptian market, the company has a leading platform in non-bank financing services, covering various activities including microfinance, financial leasing and factorization, as well as buy now and pay later (BNPL), real estate financing and insurance.
With its recent acquisition of a majority stake in aiBANK, it has also enabled the company to offer banking products and services.
The three business sectors, Investment Bank, Non-Bank Finance and Commercial Bank, have contributed to consolidating the leading position unique to the company and improving its ability to launch more financial products and services, thus contributing to providing a comprehensive package of services to meet the needs of its customers, individuals and companies of all sizes, and access to new customers.
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EFG Hermes Holdings may have referred in this statement to future matters, including, for example, management’s expectations, strategy, objectives, growth opportunities and future indicators of various activities. These statements about the future are not seen as real facts, but rather give the group’s vision for the future, and many of these expectations, in terms of their nature, are uncertain and beyond the company’s control, and these include – for example, but not limited to – fluctuations in the financial markets and the actions of current and potential competitors and the circumstances The general economic and the consequences arising from the local currency position and the current and future legislation and various regulations. Consequently, the reader should be careful not to rely excessively on statements about the future that are correct on the date of publication.