Arab Finance: EFG Hermes, an EFG Holding company, has successfully closed an EGP 5.1 billion corporate bond issuance for EFG Corp-Solutions, EFG Finance’s leasing and factoring arm, according to an emailed press release.

Marking the largest corporate bond issuance ever completed in Egypt’s debt capital market, the transaction bolsters EFG Hermes’ position as a leading advisor and arranger of complex debt capital market transactions.

The issuance also provides EFG Corp-Solutions with substantial funding to support the continued expansion of its leasing and factoring portfolio.

EFG Hermes acted as sole financial advisor, sole transaction manager, sole book-runner, underwriter, and arranger on the issuance.

Issued with an entity credit rating of A-, the 13-month bond, was structured across two tranches to accommodate different investor preferences and repayment profiles: tranche A, which is a fixed-rate tranche with bullet repayment at maturity, and tranche B, a variable-rate tranche with quarterly repayments.

Maged El Ayouti, Co-Head of Investment Banking at EFG Hermes, said: “This landmark issuance reflects the continued development of Egypt’s debt capital markets and the growing depth of institutional demand for well-structured corporate credit.”

“Executing a transaction of this scale underscores the strength of EFG Hermes’ DCM division, as well as our ability to design financing solutions that meet issuer objectives while aligning with investor appetite,” El Ayouti.

Talal El Ayat, CEO of EFG Corp-Solutions, said: “This bond issuance is an important milestone for EFG Corp-Solutions and directly supports our ability to fund high-quality growth across our leasing and factoring platforms.”

For her part, Maie Hamdy, Managing Director, Debt Capital Markets at EFG Hermes, added: “The dual-tranche structure was designed to provide repayment flexibility and broaden investor participation across the issuance. The strong execution of this transaction highlights continued appetite for quality corporate credit in Egypt and the role that well-structured debt instruments can play in supporting funding diversification, market depth, and sustainable portfolio growth.”

Following this issuance, EFG Corp-Solutions’ total debt capital market issuances reached EGP 16.7 billion, comprising four securitizations totaling EGP 7.6 billion, four corporate bond issuances totaling EGP 8.7 billion, and one short-term note of EGP 433 million.

Proceeds from the latest issuance will be used to finance operational activities and support portfolio growth.

Bank NXT acted as placement agent on the transaction. Dreny & Partners served as legal advisor, while KPMG acted as auditor.