EFG Hermes Closes Palm Hills Developments Securitization Issuance Worth EGP 421 Million

Cairo, December 25, 2023

EFG Hermes, the leading investment bank in Frontier and Emerging Markets (FEM) under EFG Holding and Palm Hills Developments (PHD), a leading real estate developer in Egypt jointly announced today the successful closing of an EGP 421 million securitized bond, the second issuance in a newly approved EGP 5 billion program.

The issuance is structured as follows:

• Tranche A – valued at EGP 50.52 million with a tenor of 13 months and a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS)
• Tranche B – valued at EGP 155.77 million with a tenor of 36 months and a credit rating of AA from MERIS
• Tranche C – valued at EGP 214.71 million with a tenor of 84 months and a credit rating of A from MERIS

Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, commented: “We are delighted to report the successful closure of PHD’s EGP 5 billion securitized bond program’s second issuance, which demonstrates our long-standing partnership with the prominent Egyptian developer. The issuance garnered significant interest from investors, highlighting the ongoing significance and demand for top-tier real estate assets in the Egyptian market. This deal also underscores our leading role as the preferred financial advisor and arranger for securitization transactions in Egypt, as we persist in delivering innovative, custom-tailored solutions across diverse sectors and industries to fortify our clients’ financial stability and support their ambitious expansion strategies.”

Tarek Tantawy, Co-CEO and Managing Director of PHD, expressed pride, stating, “We are delighted to sustain our enduring collaboration with EFG Hermes through the successful completion of our second issuance in the securitized bond program. This accomplishment underscores our robust financial performance, the confidence investors have in our growth trajectory, and our capacity to secure funding from diverse channels. We eagerly anticipate channeling these funds into our continued expansion, aiming to surpass customer expectations by delivering timely, high-quality developments that ultimately enhance the overall value of the real estate market.”

EFG Hermes acted as the sole financial advisor, bookrunner, and underwriter. ALC-Alieldean Weshahi & Partners acted as the transaction’s legal advisor, while KPMG acted as the transaction’s auditor. Arab African International Bank (AAIB), Commercial International Bank (CIB), and Al Baraka Capital acted as the underwriting banks. Al Baraka Bank and Ahli United Bank were subscribers to the issuance. AAIB was also the transaction’s custodian.

About EFG Holding

EFG Holding (EGX: HRHO.CA – LSE: EFGD) is a trailblazing financial institution that boasts a remarkable 40-year legacy of success in 12 countries spanning four continents. Operating within three distinct verticals — the Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and Commercial Bank (aiBANK) — the company provides a comprehensive range of groundbreaking financial products and services tailored to meet the needs of a diverse clientele, including individual clients and businesses of all sizes.

EFG Hermes, the leading investment bank in Frontier and Emerging Markets (FEM), offers an extensive array of financial services, encompassing advisory, asset management, securities brokerage, research, and private equity. In its domestic market, EFG Holding serves as a universal bank, with EFG Finance emerging as the fastest-growing NBFI platform, comprising Tanmeyah, a microfinance player, EFG Corp-Solutions, which provides leasing and factoring services, Valu, a versatile financial technology powerhouse, PayTabs Egypt, a digital payment platform, as well as Bedaya for mortgage finance and Kaf for insurance. Furthermore, the company delivers commercial banking solutions through aiBANK, a leading provider of integrated retail, corporate, and Islamic banking products in Egypt.

Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Bahrain | Pakistan | UK | Kenya | USA | Bangladesh | Nigeria | Singapore

About Palm Hills Developments

Palm Hills Developments (“PHD”), a leading real estate developer in Egypt, is a joint stock company established in 1997. The Company builds integrated communities and has one of the most diversified land bank portfolios, spreading over 30.6 million square meters (“sqm”). PHD’s product offerings include primary homes in West Cairo, East Cairo and Alexandria, as well as secondary homes on the North Coast (Mediterranean Sea).

As at end of 9M2023, PHD delivered more than 14,700 units within its developments. Today, PHD has several projects under development in West Cairo, East Cairo, North Coast and Alexandria, in addition to co-development projects, translating into a sales backlog of c.EGP 35 billion. PHD is listed and traded on the Egyptian Stock Exchange under the symbol “PHDC.CA”.