EFG Hermes Corp-Solutions has issued EGP 450 mn in debt, its second issuance in a wider EGP 3 bn program, according to a statement (pdf).

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How will the funds be used? “This achievement also serves as a crucial step in our strategy to offer the highest quality leasing and factoring solutions to a broader segment of customers. We are excited to build on this successful partnership as we tackle expanding demand for the financing services industry in Egypt,” EFG Corp-Solutions CEO Talal Al Ayat said.

Investor demand is high: “In the prevailing high-interest rate environment, the domestic capital market remains quite active and liquid for local currency bond issuances, which are attracting investor demand, and enabling corporates and NBFIs to tap the market to raise capital that would fund growth plans,” EFG Hermes Investment Banking Co-Head Maged El Ayouti said.

Advisors: EFG Hermes was the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger for the issuance. Al Ahli Bank of Kuwait - Egypt was an underwriter on the transaction.

DATA POINT- The transaction brings the total value of bonds issued in Egypt so far this year to EGP 21.6 bn — 61.9% less than the amount raised in the same period last year — according to data tracked by EnterpriseAM.

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