ALC advises on EGP 472.5 Million PHD-EFG Hermes Bond Deal 

Palm Hills Developments (PHD), a prominent real estate developer in Egypt, and EFG Hermes, the investment bank franchise in Frontier and Emerging Markets (FEM), have successfully closed a groundbreaking EGP 472.5 million securitized bond issuance.  

The securitized bond is structured into three tranches, each with different values, tenors, and credit ratings from Middle East Ratings and Investors Service (MERIS). Tranche A, valued at EGP 49.61 million, boasts a tenor of 13 months and a credit rating of AA+. Tranche B, valued at EGP 137.02 million, has a tenor of 36 months and a credit rating of AA. Finally, Tranche C, the largest segment valued at EGP 285.86 million, has a tenor of 84 months and a credit rating of A. 

EFG Hermes acted as the sole financial advisor, bookrunner, and underwriter. ALC-Alieldean Weshahi & Partners acted as the transaction’s legal advisor, while KPMG acted as the auditor. National Bank of Egypt (NBE), Arab African International Bank (AAIB), and Al Baraka Capital acted as the underwriting banks, with Al Baraka Bank acting as a subscriber to the issuance. AAIB was also the transaction’s custodian. 

ALC-Alieldean Weshahi & Partners team was was headed by managing partner Bahaa Alieldean (pictured) and included partner Mahmoud El-Araby, associate Mahmoud El Gazzar along with junior associate Mohamed Gamal.