EFG Hermes, an EFG Holding company and the leading investment bank in the Middle East and North Africa (MENA), announced today that it successfully concluded advisory on the EGP 1.139 billion securitized bond issuance for MLF Finance, marking the company’s first issuance under its new EGP 12 billion securitization program.
The bond is backed by a receivables portfolio assigned to EFG Hermes for Securitization as the issuance’s special purpose vehicle (SPV). With a 78-month tenor, the issuance is comprised of four tranches, structured as follows:
• Tranche A – Valued at EGP 187.9 million, with a 13-month tenor, variable interest rate, and a credit rating of AA+
• Tranche B – Valued at EGP 449.9 million, with a 36-month tenor, variable interest rate, and a credit rating of AA
• Tranche C – Valued at EGP 341.7 million, with a 60-month tenor, variable interest rate, and a credit rating of A+
• Tranche D – Valued at EGP 159.5 million, with a 78-month tenor, variable interest rate, and a credit rating of A-
Ahmed Zahran, Founder, CEO & Managing Director at MLF-Finance, commented: “Completing our first securitization bond issuance worth EGP 1.139 billion in a relatively short period and with precision represents a significant achievement for the company. This milestone was accomplished in collaboration with esteemed institutions including EFG Hermes, MERIS, KPMG, and Dreny & Partners. Furthermore, we have obtained approval from the Financial Regulatory Authority (FRA) for a broader EGP 12 billion securitization program, which will further support our growth strategy and expansion plans within Egypt’s non-banking financial sector.”
Maie Hamdy, Managing Director, Debt Capital Markets at EFG Hermes, commented, “This issuance for MLF Finance marks a significant step forward in expanding the company’s access to diversified financing channels. By structuring the first transaction under MLF Finance’s EGP 12 billion program, we continue to reinforce our commitment to delivering tailored, high-impact debt capital market solutions that empower our clients to pursue sustainable growth with enhanced financial flexibility.
EFG Hermes acted as sole financial advisor, sole transaction manager, book-runner, underwriter, and arranger on the transaction. National Bank of Egypt (NBE), Commercial International Bank (CIB), and Banque du Caire acted as underwriters, while NBE also served as custodian and Banque du Caire served as the placement agent. Industrial Development Bank (IDB) was one of the subscribers. Dreny & Partners acted as legal advisor, and KPMG served as the auditor.
About EFG Holding:
EFG Holding (EGX: HRHO.CA – LSE: EFGD) is a financial institution that boasts a legacy of more than 40 years of success in seven countries spanning two continents. Operating within three distinct verticals — the Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and Commercial Bank (Bank NXT) – the company provides a comprehensive range of groundbreaking financial products and services tailored to meet the needs of a diverse clientele, including individual clients and businesses of all sizes.
EFG Hermes, the leading investment bank in the Middle East and North Africa (MENA), offers extensive financial services, encompassing advisory, asset management, securities brokerage, research, and private equity. In its domestic market, EFG Holding serves as a universal bank, with EFG Finance emerging as the fastest-growing NBFI platform, comprising Tanmeyah, a provider of innovative and integrated financial solutions for micro and small business owners and entrepreneurs, EFG Corp-Solutions, which provides leasing and factoring services, Valu, a universal financial technology powerhouse, Bedaya for mortgage finance, Kaf for insurance, and EFG Finance SMEs, which provides financial services for small and medium enterprises. Furthermore, the company delivers commercial banking solutions through Bank NXT, an integrated retail and corporate banking product provider
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.
