EFG Hermes (HRHO) has completed the first issuance of bond securitization for Madinet Nasr for Housing (MNHD), worth EGP 300 million.
What is Securitization🤨 Securitization refers to pooling financial assets together to create a new security, which is then divided & sold in separate tranches. Each tranche has different characteristics appealing to different types of investors.
More Details🧐 This issuance is secured by a portfolio of notes receivable worth EGP 373.9 million, & is made up of three tranches. The first tranche is to be repaid in fixed installments, & the other two tranches will be distributed according to the portfolio’s returns.
Why is this Important🤔 This issuance comes after EFG Hermes’ completion of the issuance of securitized bonds for Pioneers Properties (PRDC) in December 2021, worth EGP 627.5 million.