Egypt’s SODIC unit closes its first EGP 343 million securitisation bond issuance

Egypt’s property developer SODIC announced on Tuesday that it had closed its first securitisation bond issuance worth 343 million Egyptian pounds ($21.8 million) for its subsidiary SODIC for Securitization.

It was backed by a receivables portfolio worth 384 million pounds, corresponding to future instalments for 753 handed over residential units in Eastown Residences in east Cairo and Caesar in the North Coast, SODIC said in a bourse filling.

SODIC for Securitization’s issuance includes two tranches with tenors of 13 and 36 months which received credit ratings of AA+ and A, respectively, from Middle East Ratings and Investor Services (MERIS).

The 13-month tranche has a value of 235 million pounds and a fixed coupon rate of 9.55 percent, while the 36-month tranche has a value of 108 million pounds and a fixed coupon rate of 9.9 percent, the filling added.

EFG Hermes acted as the financial advisor, arranger, manager, promotor, and co-underwriter of the issuance, in collaboration with National Bank of Egypt (NBE), Commercial International Bank (CIB-Egypt), Arab African International Bank (AAIB), and Suez Canal Bank.

While and Case acted as the legal advisor, and KPMG was the financial auditor for the issuance, and CIB as the custodian.