Arab Finance: EFG Hermes has successfully concluded its advisory on the fourth securitization issuance worth EGP 1.4 billion for Bedaya Mortgage Finance, as per an emailed press release.

Bedaya Mortgage Finance is Egypt's first non-bank online mortgage provider and operates as one of EFG Finance's non-bank financial institutions (NBFIs).

This latest issuance is part of a broader EGP 3 billion program and is backed by a portfolio of receivables assigned to Capital for Securitization, a subsidiary of GB Capital, which serves as the special purpose vehicle (SPV) for the issuance.

The securitized bond is divided into four tranches with variable yields.

Tranche A is valued at EGP 63.7 million, with a 13-month tenor and a credit rating of AA from the Middle East Rating and Investors Service (MERIS). Tranche B is valued at EGP 353.9 million, with a 36-month tenor and a credit rating of A from MERIS.

Tranche C, worth EGP 509.6 million, has a 60-month tenor and a credit rating of A-, while Tranche D, valued at EGP 488.3 million, features an 81-month tenor and also carries a credit rating of A-.

In this transaction, EFG Hermes acted as the sole financial advisor, transaction manager, book-runner, arranger, and underwriter.

The underwriting banks included the National Bank of Egypt (NBE) and Al Baraka Bank Egypt, while Abu Dhabi Commercial Bank Egypt (ADCB) served as the custodian bank.

Arab Banking Cooperation (ABC) and Société Arabe Internationale de Banque (SAIB) were subscribers to the transaction.

Legal advisory services were provided by Barakat, Maher & Partners in association with Clyde & Co, and Sherif Mansour Dabus–Russell Bedford served as the auditor.

This transaction marks the latest addition to a series of debt issuances that EFG Hermes has advised on in the region.

In June, the firm completed advisory for a short-term note issuance valued at EGP 433 million for EFG Corp-Solutions, with a one-year term.

It also recently advised on a senior unsecured short-term note issuance for Hermes Securities Brokerage Company (HSB) in an EGP 600 million transaction, marking the fifth issuance for the company as part of a two-year program worth EGP 2 billion.

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