EFG Hermes announced, on Tuesday, that the first issuance of a securitisation programme worth a total of EGP 6.5bn for Amer Group, Porto Group, and Qasatli, has been successfully concluded.
The financial services company acted as sole arranger and financial advisor on the EGP 700m issuance, which was covered more than one time. It is part of a programme for a portfolio of receivables worth EGP 911m from five originators, including Amer Group’s four subsidiaries, and mortgage finance company Qasatli.
The securitisation transaction consists of three tranches, with the first holding a maturity of 13 months, the second up to 36 months, and third up to 60 months.
Middle East Ratings and Investor Services (MERIS) assigned the first tranche a credit rating of AA+, with the second and third tranches receiving designations of AA and A, respectively.
“We are pleased to once again be partnering with Amer Group, one of Egypt’s leading real estate developers,” said Mostafa Gad, Co-Head of EFG Hermes’ Investment Banking Division, “The transaction follows on the heels of the successful close of a securitisation program on behalf of Talaat Moustafa Group, bringing total debt issuances for the team to nine worth EGP 6 billion since the beginning of 2020.”
He noted that the success only serves to underscore EFG Hermes’ commitment to expanding its securitisation capabilities as the asset class continues to gain traction in Egypt.
The programme was approved in December 2020 for nine different originators: Amer Group’s four subsidiaries; four subsidiaries of Porto Group; and Qasatli. The Arab African International Bank (AAIB), the Commercial International Bank (CIB), and the Suez Canal Bank (SCB) acted as underwriters, with CIB acting as custodian