EFG : Hermes Successfully Concludes EGP 472 Million Securitized Bond Issuance for EMRC as Part of its EGP 3 Billion Issuance Program

EFG Hermes Successfully Concludes EGP 472 Million Securitized Bond Issuance for EMRC as Part of its EGP 3 Billion Issuance Program

EFG Hermes Successfully Concludes EGP 472 Million Securitized Bond Issuance for EMRC as Part of its EGP 3 Billion Issuance Program

Cairo, September 10, 2023

EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today that its investment banking division successfully concluded advisory on the first issuance for Egyptian Mortgage Refinance Company (EMRC) in a securitized bond offering worth EGP 472 million. This comes as the first issuance in a newly approved EGP 3 billion securitization program.

With this landmark securitization program, EMRC has become the first refinance mortgage company to securitize portfolios for mortgage companies in the Egyptian market. As EMRC operates as a refinance mortgage company, it acquired the securitized portfolio from Bedaya Mortgage Finance, which assumed the role of the transaction's servicer.

The issuance is structured as follows:

- Tranche A - valued at EGP 66.1 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 193.5 million with a tenor of 36 months and a credit rating of AA from MERIS

- Tranche C - valued at EGP 212.4 million with a tenor of 69 months and a credit rating of A from MERIS

Maie Hamdy, Managing Director - Debt Capital Markets at EFG Hermes, commented: "The successful completion of the EMRC securitization issuance underscores EFG Hermes' commitment to driving innovation and progress within the financial market. This achievement not only amplifies our expertise as a financial services leader but also paves the way for transformative advancements in the mortgage landscape. EFG Hermes continues to reinforce its role as a pioneer in Egypt's debt capital market, advising on an extensive variety of securitization deals in the country and garnering widespread investor interest. We are proud to have been a part of this milestone, supporting growth and innovation in the mortgage industry."

Commenting on the issuance, Ehab Abou Ali, Managing Director from EMRC, said: "This milestone marks an important advancement for both EMRC and the primary mortgage market in Egypt. By securitizing portfolios for mortgage companies, we aim to enhance their liquidity, strength capital structure and promote accessibility for homeowners and prospective buyers. This collaboration with EFG Hermes aligns with our mission to facilitate the development of the housing finance sector and will aid us in the realization of our goals and long-term growth strategy."

This issuance comes on the heels of EFG Hermes' successful closing of an EGP 472.5 million securitized bond for Palm Hills Development (PHD), and an EGP 958 million issuance for Bedaya Mortgage Finance. The investment banking division also concluded an EGP 805.5 million issuance for Madinet Masr (previously Madinet Nasr for Housing and Development), Al Taamir Mortgage Finance - Al Oula's EGP 998.5 million issuance, Valu's EGP 856.5 million issuance, as well as an EGP 986 million issuance for Misr Italia Properties.

EFG Hermes acted as the transaction's bookrunner, underwriter, and co-financial advisor alongside Al Ahli Pharos. Dreny and Partners acted as the transaction's legal advisor, while KPMG acted as the auditor. National Bank of Egypt (NBE) and Arab African International Bank (AAIB) acted as the underwriting banks, with AAIB acting as the transaction's custodian.

-Ends-

About EFG Holding

EFG Holding (EGX: HRHO.CA - LSE: EFGD) is a trailblazing financial institution with an over 40-year track record of success in 12 countries across four continents. Through its three verticals - the Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and Commercial Bank (aiBANK) - the Firm offers markets a holistic portfolio of disruptive financial products and services that serve a growing base of individual clients and businesses of all sizes.

We are the leading investment bank franchise in Frontier and Emerging Markets (FEM), providing a broad spectrum of financial services including advisory, asset management, securities brokerage, research, and private equity. In our home market, we are a universal bank with the fastest-growing NBFI platform that includes microfinance player Tanmeyah, leasing and factoring service provider EFG Corp-Solutions, universal financial technology powerhouse Valu, digital payment platform PayTabs Egypt, Bedaya for mortgage finance, and Kaf for insurance. Additionally, the Firm offers 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 | Jordan | Pakistan | UK | Kenya | USA | Bangladesh | Nigeria | Singapore

Learn more about us at https://www.efghldg.com/

For further information, please contact:

May El Gammal

Group Chief Marketing & Communications Officer of EFG Holding

[e-mail]

Omar Salama

Communications Manager of EFG Holding

[e-mail]

The EFG Holding Public Relations Team

[e-mail]

Note on Forward-Looking Statements

In this press release, EFG Holding may make forward-looking statements, including, for example, statements about management's expectations, strategic objectives, growth opportunities, and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Holding's belief regarding future events, many of which, by their nature, are inherently uncertain and are beyond management's control and include, among others, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending, and future legislation, regulations and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made.

About EMRC

EMRC is a specialized financial institution established in June 2006 under Law 148 for the year 2001 to assume the role of a market maker and lay the foundation of an active secondary market with a primary mandate to operate as a second-tier, wholesale, market-based liquidity facility focused on refinancing mortgage loans originated by Primary Mortgage Lenders (PMLs), it will raise funds initially through long-term loans from institutional investors and equity contributions from the founding investors and its shareholders, and from bond markets by becoming a well-rated and regular issuer in the capital markets.

Learn more about us at www.emrc-online.com