EFG Hermes, an EFG Holding company and a leading investment bank in the Middle East and North Africa, has successfully closed a short-term bond note issuance for Hermes Securities Brokerage.
The transaction marks the first issuance under the company’s newly established fourth short-term bond program, with a total size of EGP 10 billion, aimed at diversifying funding sources and supporting operational expansion.
Strong investor demand for short-term instruments
The bond was issued as a single 12-month tranche and was fully covered by institutional investors and high-net-worth individuals, reflecting strong demand for short-duration fixed-income instruments in the Egyptian market.
This issuance highlights continued investor confidence in locally denominated debt instruments despite global financial market volatility.
Seventh issuance strengthens market track record
This transaction represents Hermes Securities Brokerage’s seventh short-term note issuance, following six previous commercial paper deals with a combined value of approximately EGP 3.2 billion.
The consistent issuance activity underscores the company’s established presence in Egypt’s short-term capital markets and its ability to access diversified funding channels.
Supporting operational growth and financial flexibility
Proceeds from the new bond issuance will be directed toward supporting Hermes Securities Brokerage’s operational and business requirements, enhancing liquidity and financial flexibility.
The program reinforces the company’s position as one of Egypt’s leading brokerage platforms, while enabling scalable funding to support future growth.
Leadership commentary on the transaction
Maged El Ayouti, Co-Head of Investment Banking at EFG Hermes, commented that the issuance reflects continued commitment to expanding funding solutions and strengthening Egypt’s financial markets.
He emphasized the importance of leveraging synergies across the EFG Holding ecosystem, including collaboration with Bank NXT, to deliver innovative financing structures and attract diversified investor demand.
Strong advisory and execution framework
Bank NXT acted as placement agent, while EFG Hermes served as sole financial advisor, transaction manager, bookrunner, underwriter, and arranger.
Dreny & Partners acted as legal advisor, and KPMG served as financial auditor, ensuring a robust execution framework aligned with market standards.
Expanding Egypt’s capital market ecosystem
The transaction reflects EFG Holding’s broader strategy of deepening capital markets activity, expanding investment product offerings, and supporting subsidiaries through efficient financing mechanisms.
It also highlights growing investor appetite for structured debt instruments, reinforcing Egypt’s position as an active and evolving fixed-income market in the region.
