Palm Hills Developments (PHD), a leading real estate developer in Egypt, and EFG Hermes, an EFG Holding company and the leading investment bank in the Middle East and North Africa (MENA), jointly announced today the successful closing of an EGP 2.015 billion securitized bond issuance. The transaction represents the first issuance under PHD’s newly approved EGP 30 billion securitization program.
The issuance is structured across four tranches as follows:
- Tranche A – valued at EGP 423.15 million with a tenor of 13 months and a credit rating of AA+
- Tranche B – valued at EGP 906.75 million with a tenor of 36 months and a credit rating of AA
- Tranche C – valued at EGP 594.425 million with a tenor of 60 months and a credit rating of A+
- Tranche D – valued at EGP 90.675 million with a tenor of 84 months and a credit rating of A-
Maie Hamdy, Managing Director, Debt Capital Markets at EFG Hermes, commented:
“We are pleased to have closed this latest securitization issuance for PHD under its newly approved EGP 30 billion program. The successful execution of this transaction reflects the continued depth of investor appetite for high-quality, well-structured real estate-backed instruments, as well as the strength of PHD’s underlying portfolio. This issuance further reinforces EFG Hermes’ leadership in Egypt’s debt capital markets and our continued commitment to delivering bespoke financing solutions that support our clients’ long-term growth strategies.”
Ali Thabet, Chief Financial Officer of Palm Hills Developments, said: “We are delighted to resume our enduring collaboration with EFG Hermes through this successful completion of our first issuance in the new securitized bond program. This issuance underscores our ability to access diversified funding channels efficiently. The strong investor interest anticipated for this transaction reflects the market’s confidence in Palm Hills’ financial performance and growth outlook. We are looking for another transaction within the securitization program this year as we remain focused on leveraging such financing to expedite construction pace in our projects”.
EFG Hermes acted as the sole financial advisor, sole bookrunner, and underwriter for the transaction. ALC-Alieldean Weshahi & Partners served as the transaction’s legal advisor, while KPMG acted as the auditor. National Bank of Egypt (NBE) and Suez Canal Bank participated as underwriting banks. Arab Banking Corporation (ABC) and Emirates NBD (ENBD) are also subscribers to the issuance. Suez Canal Bank is acting as the transaction’s custodian, while NBE is serving as the placement agent.
