EFG Hermes finalizes $9.2-million bond issuance advisory for EFG Corp-Solutions

Timilehin Adejumobi -
Key Points
  • EFG Hermes successfully advised on a second bond issuance worth EGP450 million ($9.2 million), enhancing dominance in MENA’s financial markets.
  • The issuance is part of a larger EGP3-billion ($61.7 million) securitization program aimed at boosting leasing and factoring sectors.
  • EFG Hermes reports a 32% revenue increase in FY2023, driven by strong performance across its financial services operations.

EFG Hermes Holding, a leading financial services company in the MENA region led by Egyptian banker Karim Awad, has concluded its role as financial advisor for a second bond issuance valued at EGP450 million ($9.2 million).

The five-year bond issuance marks another milestone in the firm’s aggressive expansion strategy and dominance in the region’s financial markets.

The transaction was carried out for EFG Corp-Solutions, a subsidiary of EFG Finance, and falls under the company’s Non-Bank Financial Institutions (NBFI) platform. EFG Corp-Solutions has emerged as a top-tier player in Egypt’s leasing and factoring markets, solidifying EFG Hermes' leadership in the non-banking financial sector.

Strategic financing initiatives

The bond issuance is part of a broader EGP3-billion ($61.7 million) securitization program designed to support the leasing and factoring sectors. EFG Hermes served as the exclusive financial advisor, transaction manager, book-runner, underwriter, and arranger for the deal.

Al Ahli Bank of Kuwait – Egypt (ABK) also participated as an underwriter, further underscoring the collaborative effort involved. This issuance highlights EFG Hermes’ expertise in managing complex financial transactions and reaffirms its preeminence in Egypt’s capital markets.

In June, EFG Hermes advised on a short-term note issuance worth EGP433 million ($8.9 million) for EFG Corp-Solutions. The firm also concluded a senior unsecured note issuance valued at EGP 600 million ($12.5 million) for Hermes Securities Brokerage, part of an EGP 2-billion ($41 million) program.

Additionally, EFG Hermes recently advised fintech leader Valu on its tenth securitized bond issuance, valued at EGP1.2 billion ($24.7 million), under a larger EGP9 billion ($185 million) program.

Maged El Ayouti, co-head of investment banking at EFG Hermes, emphasized that the latest issuance for EFG Corp-Solutions demonstrates market resilience. "Despite high-interest rates, local currency liquidity remains robust, allowing corporates and NBFIs to secure necessary capital," he said. Talal El Ayat, CEO of EFG Corp-Solutions, added that the bond would help expand the firm’s investor base and reinforce confidence in its business model.

Expanding market leadership

EFG Hermes continues to grow under Karim Awad, maintaining a strong presence in securities brokerage, asset management, investment banking, private equity, and financial research.

The firm’s recent successes include advising United International Transportation Company (Budget Saudi) on its $121-million acquisition of Al-Jazira Equipment (AutoWorld) and executing several bond issuances for its subsidiaries.

EFG Hermes reported a 32-percent increase in revenues in FY2023, reaching EGP8.1 billion ($166 million). The company’s ongoing expansion across sell-side and buy-side operations underscores its ability to deliver substantial value to clients and investors across the region