Misr Italia Properties becomes the first non-listed real estate developer to issue securitization through EFG Hermes, Invest-Gate reports.

Misr Italia Properties and EFG Hermes’ investment banking division announce the close of the first issuance, worth EGP 794 mn, in an EGP 2.5 bn securitization program. The bond is backed by a receivables portfolio of around EGP 1 bn originated by two Misr Italia Holding subsidiaries.

The bond is comprised of three tranches, with the first divided into fixed installments and the second and third to be disbursed based on the proceeds of the portfolio. Tranche A has valued at EGP 214.3 mn, with a tenor of 13 months, a credit rating of AA+ from Middle East Ratings and Investors Service (MERIS), and a fixed coupon rate of 9.60%. Tranche B has valued at EGP 420.8 mn, with a tenor of three years, a credit rating of AA from MERIS, and a fixed coupon rate of 9.95%. Finally, tranche C is valued at EGP 158.8 mn, with a tenor of five years, a credit rating of A from MERIS, and a fixed coupon rate of 10.20%.

Mohamed Hany El Assal, CEO and managing director of Misr Italia Properties, comments, “We pride ourselves on being the first non-listed real estate developer to issue securitized bonds through EFG Hermes, as this issuance will reflect positively on the financial statements of the company and will contribute to our commitment toward our clients for the timely delivery of units.”

“The company went through a rigorous operational review process by Moody’s subsidiary, MERIS, and received a very strong credit rating that we are proud of. This is the result of a very solid corporate governance and the hard work of a top-notch executive and management teams,” says El Assal.

Additionally, Mostafa Gad, Co-Head of Investment Banking at EFG Hermes, says that last November, MIP signed an agreement with valU, the leading buy now pay later (BNPL) platform and a subsidiary of EFG Hermes, to provide MIP’s clients with financing programs to cover finishing and furnishing expenses. Further, MIP and EFG Hermes signed a sale and leaseback agreement worth EGP 750 mn last October to refinance its flagship commercial project in New Cairo.

Likewise, EFG Hermes acts as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger on the issuance. aiBANK participates in this transaction alongside CIB, BDC, NBE, and Suez Bank.