Four Egyptian banks back SODIC unit’s first securitisation bond issuance

A banking consortium has supported SODIC’s latest securitisation bond programme with a total investment of 343 million Egyptian pounds ($21.8 million), sources with knowledge of the matter told Amwal Al Ghad on Wednesday.

SODIC, one of the largest property developers in Egypt, announced on Tuesday that it had closed its first securitisation bond issuance worth 343 million pounds for its subsidiary SODIC for Securitization.

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-Egypt (CIB), Arab African International Bank (AAIB), and Suez Canal Bank.

Banks’ Contribution in Numbers

NBE, CIB-Egypt, AAIB, and Suez Canal Bank have each contributed 77.3 million pounds to the securitisation bond issuance, the sources added.

The bond issuance 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, according to SODIC’s bourse filling on Tuesday.

It 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 SODIC filling added.

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