EFG Hermes Holding, a renowned financial services company in the MENA area managed by Egyptian banker Karim Awad, has completed its duty as financial advisor on a second bond sale worth EGP450 million ($9.2 million).
The five-year bond offering is another step towards the firm’s ambitious expansion strategy and domination in the region’s financial markets.
The acquisition was completed for EFG Corp-Solutions, a subsidiary of EFG Finance, and comes within the company’s Non-Bank Financial Institutions (NBFI) platform. EFG Corp-Solutions has developed as a leading participant in Egypt’s leasing and factoring industries, reinforcing EFG Hermes’ position in the non-banking financial sector.
The bond sale is part of a larger EGP3 billion ($61.7 million) securitization initiative aimed at supporting the leasing and factoring industries. EFG Hermes was the only financial advisor, transaction manager, bookrunner, underwriter, and arranger for the transaction.
Al Ahli Bank of Kuwait – Egypt (ABK) also served as an underwriter, emphasizing the joint effort required. This issuance demonstrates EFG Hermes’ ability in executing complicated financial transactions and reaffirms its leadership in Egypt’s capital markets.
In June, EFG Hermes advised EFG Corp-Solutions on the issuing of a short-term note totaling EGP433 million ($8.9 million). The business recently completed a senior unsecured note issuance of EGP 600 million ($12.5 million) for Hermes Securities Brokerage as part of an EGP 2-billion ($41 million) program.
Additionally, EFG Hermes recently advised fintech company Valu on its tenth securitized bond offering, valued at EGP1.2 billion ($24.7 million), as part of a broader EGP9 billion ($185 million) program.
Maged El Ayouti, co-head of investment banking at EFG Hermes, stated that the most recent issue for EFG Corp-Solutions showed market resiliency. “Despite high-interest rates, local currency liquidity remains robust, allowing corporates and NBFIs to secure necessary capital,” said Mr. Singh. Talal El Ayat, CEO of EFG Corp-Solutions, stated that the bond would broaden the company’s investor base and boost confidence in its business approach.
EFG Hermes continues to expand under Karim Awad, with a strong presence in securities brokerage, asset management, investment banking, private equity, and financial research.
The firm has successfully advised Budget Saudi on its $121 million acquisition of Al-Jazira Equipment (AutoWorld) and executed bond issuances for its subsidiaries.
In FY2023, EFG Hermes reported a 32% growth in revenues to EGP8.1 billion ($166 million). The company’s continued expansion across sell-side and buy-side operations highlights its capacity to generate significant value to customers and investors throughout the region.