SODIC successfully closes first securitization bond issuance for a gross receivables portfolio of some EGP 384 million
SODIC announced that SODIC for Securitization S.A.E., SODIC’s wholly-owned subsidiary, has successfully concluded its first securitization transaction. SODIC for Securitization issued an EGP 343 million securitization bond backed by a receivables portfolio of some EGP 384 million representing future instalments for 753 delivered units in SODIC’s East Cairo project Eastown Residences and North Coast project Caesar.
SODIC for Securitization S.A.E., SODIC’s wholly-owned subsidiary
The securitization bond was met with solid interest from investors and was heavily oversubscribed, a testament to the market’s trust in SODIC and its strong financial and operational performance and EFG Hermes’ unmatched track record in the debt capital market (DCM) space.
The bond comprises two tranches; Tranche A with an amount of EGP 235 million, a tenor of 13 months, a credit rating of AA+, and a fixed coupon rate of 9.55%, and Tranche B with an amount of EGP 108 million, 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).
EFG Hermes acted as the financial advisor, arranger, manager, promoter, and co-underwriter for the transaction along with National Bank of Egypt (NBE), Commercial International Bank (CIB), Arab African International Bank (AAIB), and Suez Canal Bank.
In addition, White and Case acted as the legal advisor, and KPMG acted as the financial auditor for the issuance, with CIB acting as the custodian.
Maged El Ayouti, Managing Director & Deputy Head of Investment Banking, commented: “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.”
Commenting on the transaction Omar Elhamawy, SODIC’s Chief Financial Officer, said: “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.”
