EFG Hermes, a financial services corporation in Frontier Emerging Markets (FEM), has successfully closed the fourth issuance of Premium International for Credit Services (Premium)’s EGP 2bn securitization program in a transaction worth EGP 170m.

This is the first issuance this year and the fourth in the two-year program, which is the first short-term securitization program in Egypt under the new Short-Term Debt Instrument decree (STDI) no. 172 of 2018.

The third EGP 160m issuance closed in September 2020.

Middle East Ratings and Investor Services (MERIS) assigned the EGP 170m bond, which consists of a single 10-month tranche, a Prime 1 Rating as it did with the last three issuances, making it one of the highest rated bond issuances in the Egyptian market.

Premium is the originator, assigning a portfolio backed by customer credit to EFG Hermes, the securitization SPV. 

Mostafa Gad, Co-Head of Investment Banking at EFG Hermes, said: “We’re very proud to be paving the way for growth in the securitization market, an asset class that has come into increased focus as of late. Coming less than a week following the successful close of the first issuance in a securitization program for Amer Group, Porto Group, and Qasatli, the transaction underscores the dedication of the team to hone our service offering in this space and drive growth for both the Firm and our clients. We look forward to continuing to work closely with Premium on upcoming issuances.”

EFG Hermes acted as the sole financial advisor, sole transaction manager and book-runner, underwriter, and arranger.