EFG Hermes Concludes Advisory on Premium’s Ninth Securitization Issuance Worth EGP 400 Million

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 successfully concluded advisory on the EGP 400 million securitized bond issuance for Premium International for Credit Services (Premium). The issuance comes as their ninth since inception and the third in a wider EGP 2 billion program.

The bond is backed by a receivables portfolio assigned to EFG Hermes Securitization as the issuance’s special purpose vehicle (SPV), and is comprised of two tranches, structured as follows:

• Tranche A – Valued at EGP 264 million, with a 12-month tenor, fixed interest rate, and a credit rating of P1 from Middle East Rating and Investors Service (MERIS)
• Tranche B – Valued at EGP 136 million, with a 36-month tenor, variable interest rate, and a credit rating of A from MERIS

Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, an EFG Holding company, commented, “This transaction is a testament to the strong and enduring partnership we have built with Premium over the years, as we’ve worked together to provide innovative and tailored financing solutions that support their growth trajectory and liquidity needs. With nine issuances under their belt, Premium continues to demonstrate its resilience and commitment to delivering value to its stakeholders, and we are proud to play an integral role in facilitating their access to diversified funding sources. By structuring innovative debt capital solutions tailored to our clients’ needs, we continue to pave the way for businesses to access diversified financing options, enabling them to expand and thrive in challenging economic environments”.

This transaction comes as the latest in a string of debt issuances advised on by EFG Hermes in the region. Most recently, the firm concluded advisory on Sylndr’s EGP 300 million working capital facility. EFG Hermes advised Valu on its thirteenth securitized bond issuance worth EGP 519.2 million, as well as the fifth securitization for Bedaya valued at EGP 1.78 billion. It also completed a short-term note valued at EGP 433 million for EFG Corp-Solutions back in June and a senior unsecured short-term note for Hermes Securities Brokerage Company (HSB) in an EGP 600 million transaction.

EFG Hermes acted as sole financial advisor, sole transaction manager, book-runner, underwriter, and arranger on the transaction. Arab African International Bank acted as an underwriting bank and the custodian bank.  Suez Canal Bank acted as an underwriting bank and the subscription bank for the transaction. Dreny & Partners acted as legal advisors, while KPMG served as the auditor.