MNHD finalizes securitization issuance by LE 370M

CAIRO - 19 December 2019: Madinet Nasr Housing and Development (MNHD) announced Thursday the closing of a securitization bond issued by Financial Group for Securitization (FGS) backed by a receivables portfolio of LE 370 million originated by MNHD.

MNHD clarified that this step came as part of the company’s plan to monetize receivables from delivered units in Tag Sultan and other completed projects.

“The three tranches of the bond, amounting to a total EGP 305 million, received ratings of AA+, AA and A by Middle East Rating & Investors Service (MERIS),” MNHD added.

MNHD noted that EFG-Hermes Promotion & Underwriting and Commercial International Bank (CIB) acted as structuring advisor, lead managers and arranger of the transaction, adding that the issuance was fully underwritten by EFG-Hennes, CIB, and National Bank of Egypt (NBE). Dr. Zaki Hashem & Partners firm acted as legal advisors for the transaction, and KPMG acted as the auditors.

“This is a great start to our securitization program,” said Ahmed el-Hitamy, CEO of MNHD, “units in Tag Sultan, Primera, and Waha projects were utilized for this securitization. MNHD has an ambitious target to continue securitizing when deliveries in Taj City and SARAI materialize in 2020,” he added.

On Nov. 20, the Financial Regulatory Authority (FRA) approved a program issuing short-term securitization bonds worth LE2 billion, according to FRA Head Mohamed Omran. Omran clarified that, as a part of this program, FRA agreed to issue two short-term securitization bonds for Premium International for credit services.