Home » Led by Egyptian banker Karim Awad, EFG Hermes concludes advisory to $102.4-million bond program

Led by Egyptian banker Karim Awad, EFG Hermes concludes advisory to $102.4-million bond program

by Omokolade Ajayi
Karim Awad

EFG Hermes Holding, a financial services company based in Cairo and led by prominent banking executive and Egyptian banker Karim Awad, has completed an advisory on a securitization bond issued by one of its subsidiaries, EFG Hermes Corp-Solution, for EGP2 billion ($102.4 million).

The securitization bond program, which is worth $102.4 million and was issued in three tranches, is supported by a portfolio of receivables totaling EGP2.9 billion ($148.54 million), which comprises 24 lease contracts.

The securitization bond’s Tranche A is worth EGP260 million ($13.3 million), has a 13-month duration, and has a credit rating of AA+ from Middle East Ratings and Investor Services.

Tranches B and C are worth EGP890 million ($45.6 million) and EGP850 million ($43.5 million), respectively, and have durations of 36 and 72 months.

Talal El Ayat, CEO of EFG Hermes Corp-Solutions, commented on the bond issuance, stating that it will help the company achieve its objectives of growing its clientele and expanding its operational footprint by allowing it to diversify its funding sources. 

EFG Hermes Holding is a financial services conglomerate based in the Middle East, North Africa, Sub-Saharan Africa, and South Asia.

The market capitalization of the leading financial services group as of press time on Oct. 2 was EGP13.44 billion ($688.4 million), with shares of the company trading at EGP11.51 ($0.589).

Under Awad, EFG Hermes total assets have increased to more than $2.7 billion, and it has attained leadership positions in research, investment banking, asset management, and securities brokerage.

The group saw its profits in the first half of 2022 decline by one percent from EGP698 million ($36.4 million) during the same period in 2021 to EGP689 million ($36 million) as a result of an increase in operating expenses and the group’s tax.

Despite the single-digit slump in earnings, the bank’s assets grew by 15 percent during the first six months of its reporting period, from EGP45.6 billion ($2.38 billion) at the start of the year to EGP52.6 billion ($2.74 billion), as it continued to improve liquidity management.

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