Egyptian businessman Waleed Zaki’s Pioneers Properties completes $22.4-million bond issuance

Pioneers Properties for Urban Development (Pioneers Properties), an Egyptian real estate developer led by Egyptian businessman Waleed Zaki, has completed its EGP425-million ($22.4 million) securitized bond issuance as part of its EGP3-billion ($158.3 million) bond program.

Pioneers Properties is a subsidiary of Aspire Capital Holding, an Egyptian diversified group founded in 2007 by Zaki and active in investment banking, real estate, and industry.

EFG Hermes, an Egyptian investment banking group, served as the sole financial adviser, transaction manager, book-runner, underwriter, and arranger on the issuance.

The recently completed bond issuance is the second tranche of Pioneers Properties’ EGP3-billion ($158.3 million) bond program and is backed by an EGP613.5-million ($32.4 million) receivables portfolio assigned to EFG Hermes Holding’s Financial Group for Securitization as the issuance’s special purpose vehicle.

According to Waleed Zaki, chairperson and CEO of Pioneers Properties for Urban Development, the net proceeds from the bond issuance will be used to support the company’s operations and capacity as part of its efforts to its increase market share on the Egyptian real estate market.

“The second issuance for Pioneers Properties for Urban Development’s affiliates comes as an integral step in our strategy to continue expanding our operational footprint and client base, as we look for diversified funding solutions that bolster our capacities and enable us to capture a larger share of the rising demand in the Egyptian real estate landscape,” he said.

Zaki, the founder and chairman of Aspire Capital Holding (previously Pioneers Holding Company), has been instrumental in the company’s expansion into Middle Eastern financial markets such as the United Arab Emirates and Saudi Arabia.

Under his leadership, the company developed a successful acquisition strategy, which resulted in the acquisition of three companies with active operations in asset management, institutional brokerage, and investment banking.

He also led a strategic expansion move in 2011 that strengthened Aspire’s position as a leading investment group in the region by acquiring significant stakes in six publicly traded companies involved in real estate development, construction, manufacturing, and the food industry.