SODIC for Securitization S.A.E, SODIC’s wholly-owned subsidiary, concludes successfully its first securitization transaction; it has issued an EGP 343 mn securitization bond backed by a receivables portfolio of some EGP 384 mn, representing future installments for 753 delivered units in SODIC’s East Cairo project, Eastown Residences, and the North Coast project, Caesar, Invest- Gate reports.
It is noteworthy that the securitization bond was met with solid interest from investors and was heavily oversubscribed, which expresses the market’s trust in SODIC and its strong financial and operational performance.
The bond comprises two tranches:
– Tranche A with an amount of EGP 235 mn, a tenor of 13 months, a credit rating of AA+, and a fixed coupon rate of 9.55%.
-Tranche B with an amount of EGP 108 mn, a tenor of 36 months, a credit rating of A, and a fixed coupon rate of 9.9%.
Both tranches were credited from Middle East Ratings and Investor Services (MERIS).
In this regard, EFG Hermes acted as the financial advisor, arranger, manager, promoter, and co-underwriter for the transaction along with the National Bank of Egypt (NBE), the Commercial International Bank (CIB), the Arab African International Bank (AAIB), and the Suez Canal Bank. Additionally, White and Case acted as the legal advisor, and KPMG acted as the financial auditor for the issuance, with CIB acting as the custodian.
For his part, Maged El Ayouti, managing director & deputy head of Investment Banking, comments, “Partnering with SODIC on their debut securitization offering, which has attracted substantial interest from financing providers, falls directly in line with our strategy to provide our clients with access to funding solutions that are tailored to their needs. Our partnership with industry heavyweights such as SODIC only serves to solidify the strength, dedication, and ability of our team to grow our capabilities in the debt capital markets space.”
In a related context, Omar Elhamawy, SODIC’s chief financial officer, states, “We are very proud of the success of this transaction. The issuance of SODIC’s first securitization bond highlights our efforts to diversify our funding sources and benefit from the decline in interest rates. We are constantly exploring different funding options to enable growth and support ongoing operations while maintaining the strength and liquidity of our balance sheet and financial position.”