Madinet Nasr for Housing & Development (MNHD) closes EGP 805.5 mn securitized bond issuance with EFG Hermes’ investment banking division, Invest-Gate reports.

The transaction is part of a three-year EGP 3 bn securitization program which kicked off in early 2022 with an EGP 300 mn bond sale.

The bond is backed by an EGP 1.2 bn strong receivables portfolio and is comprised of three fixed-interest tranches disbursed as pass-through proceeds of the portfolio, where Tranche A is valued at EGP 241.7 mn, with a tenor of 13 months and a credit rating of AA+ by Middle East Ratings and Investors Service (MERIS).

The second tranche is valued at EGP 310.1 mn, with a tenor of 36 months and a credit rating of AA from MERIS, while the final tranche is valued at EGP 253.7 mn, with a tenor of 60 months and a credit rating of A from MERIS.

Abdallah Sallam, President and CEO of MNHD, says: “We are thrilled to successfully complete this second bond issuance, which will fuel our long-term growth ambitions and expansion plans. Capitalizing on the value of our portfolio unlocks sustainable financing solutions to support our growing project pipeline.”

EFG Hermes acted as the sole financial advisor, lead arranger, bookrunner, and underwriter on the issuance.

National Bank of Egypt (NBE) participated in this transaction alongside Arab African International Bank (AAIB) and Commercial International Bank (CIB) as underwriters, with CIB also acting as custodian bank. Dreny and Partners acted as a legal advisor on the transaction.