EFG Hermes, an EFG Holding company and the leading investment bank in the Middle East and North Africa (MENA), announced today that its investment banking division has successfully closed the issuance of a senior unsecured short-term note for the Hermes Securities Brokerage Company (HSB), a wholly owned subsidiary of EFG Holding, in an EGP 900 million transaction. This marks the company’s sixth issuance and the first in an approved program worth EGP 3 billion.
The national scale long-term senior unsecured entity rating of “BBB+” with a Positive Outlook and the short-term senior unsecured issuer rating of “P2” to HSB have been affirmed by the Middle East Ratings and Investor Services (MERIS). The bond has a 12-month tenor and a variable interest rate.
Maged El Ayouti, Co-Head of Investment Banking at EFG Hermes, commented on the issuance, saying, “We are delighted to support Hermes Securities Brokerage Company (HSB) in closing its sixth issuance, which marks the first in its ambitious EGP 3 billion program, leveraging the synergies within EFG Holding. This issuance is a testament to our ongoing commitment to fostering sustainable growth within Egypt’s financial markets as we continue to deliver innovative financing solutions and attract substantial demand from an investor base in such issuances beyond commercial banks. As the leading investment bank in the MENA region’s capital markets, EFG Hermes remains dedicated to unlocking valuable investment opportunities for our clients across debt and equity markets.”
This transaction marks the latest in a series of debt issuances advised by EFG Hermes in the region. Most recently, EFG Hermes advised on Bedaya’s sixth securitization issuance worth EGP 1.64 billion. It also advised Valu on its 14th securitized bond issuance, worth EGP 463.3 million, as well as the fifth securitization for Bedaya, valued at EGP 1.78 billion. The firm also concluded advisory on Sylndr’s EGP 300 million working capital facility, in addition to a short-term note valued at EGP 433 million for EFG Corp-Solutions.
EFG Hermes acted as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger for the issuance. Commercial International Bank (CIB) acted as the placement and subscription bank. Legal advisory services were provided by Dreny & Partners, while KPMG was appointed as the auditor for the issuance.
