EFG Hermes closes its fifth short-term bond issuance: EFG Hermes has issued EGP 600 mn of debt to its subsidiary Hermes Securities Brokerage (HSB) in the form of a senior unsecured short-term note, according to a statement (pdf). The transaction will go into diversifying HSB’s sources of funding, it added.

Déjà vu? This is the second issuance of a wider EGP 2 bn program for the brokerage firm that will run over two years that kicked off in April last year

The details: The bond is a bullet note with a variable rate coupon due after six months and again when the bond ends after a year. HSB has a credit rating of BBB+ with a stable outlook for long-term senior unsecured bonds, while it has a strong P2 rating on short-term borrowing, according to the Middle East Ratings and Investors Services, the statement added.

What they said: “The issuance is a continuation of our ability to leverage the division to serve the group’s subsidiaries, whether Valu, HSB, or EFG Corp-Solutions, in raising capital in the Egyptian debt capital market,” said EFG Hermes Co-Head of Investment Banking Maged El Ayouti.

DIY issuance: EFG Hermes serves as the sole financial advisor, transaction manager, book-runner, underwriter, and arranger on the transaction.

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