Cairo-based Premium has successfully completed a $7.9 million bond issuance with advice from EFG Hermes
Premium International for Credit Services, based in Cairo, has finished issuing its ninth securitization bond worth $7.9 million (EGP 400 million). EFG Hermes, the investment arm of EFG Holding Company, provided advisory services for this process.
Bond Issuance
This transaction is the third in a larger $39.3 million (EGP 2 billion) bond program started by Premium, according to a statement from EFG Hermes on Tuesday.
The bond is backed by a portfolio of receivables given to EFG Hermes Securitization, which is acting as the special purpose vehicle (SPV) for the deal.
The bonds are split into two parts:
- Tranche A: Worth $5.2 million (EGP 264 million), with a 12-month term, a fixed interest rate, and a P1 credit rating from the Middle East Rating and Investors Service (MERIS).
- Tranche B: Worth $2.7 million (EGP 136 million), with a 36-month term, a variable interest rate, and an A credit rating from MERIS.
Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, said: “With nine bond issuances so far, Premium shows its strength and commitment to providing value to its stakeholders. We are proud to help them access different funding sources.”
Premium offers the Premium Card, an installment card that is not tied to any banks and gives interest-free payment options.
EFG Hermes was the sole financial advisor, transaction manager, book-runner, underwriter, and arranger for the deal.
Arab African International Bank acted as the underwriting and custodian bank, while Suez Canal Bank handled underwriting and subscription services. Legal advice came from Dreny & Partners, and KPMG provided auditing services.
Recent Transactions
EFG Hermes has shown a strong presence in the debt markets through several important deals in 2024.
These include Sylndr’s $5.9 million (EGP 300 million) working capital loan, Valu’s $10.2 million (EGP 519.2 million) 13th bond issuance, and Bedaya’s fifth securitization worth $35 million (EGP 1.78 billion).
EFG Hermes also completed an $8.5 million (EGP 433 million) short-term note for EFG Corp-Solutions and helped Hermes Securities Brokerage Company issue an $11.8 million (EGP 600 million) senior unsecured short-term note earlier this year.
Published: 2nd January 2025
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