EFG Hermes concludes advisory on HSB fourth, EGP 250mln senior unsecured short-term note issuance

EFG Hermes concludes advisory on HSB fourth, EGP 250mln senior unsecured short-term note issuance

- The first issuance in a newly approved, two-year program worth EGP 2 billion, HSB’s fourth issuance comes as an integral part of its plans to diversify its funding streams as it looks to expand its operational foothold and investor base

Cairo: EFG Hermes, the leading investment bank franchise in Frontier and Emerging Markets (FEM), announced today that its investment banking division has successfully closed the issuance of a senior unsecured short-term note for the Hermes Securities Brokerage Company (HSB) — a wholly owned subsidiary of EFG Hermes Holding — in a transaction worth EGP 250 million. This marks the fourth issuance for HSB and the first in a newly approved two-year program worth EGP 2 billion.

The Middle East Ratings and Investor Services (MERIS) affirmed the national scale long-term senior unsecured entity rating at "BBB+" with a Stable Outlook and the short-term senior unsecured issuer rating of “P2” to HSB. The 12-month bullet note will carry a fixed rate coupon paid at the end of the bond, with proceeds aimed at diversifying HSB’s funding sources.

Commenting on the issuance, Mostafa Gad, Co-Head of Investment Banking at EFG Hermes said: “We are incredibly proud of the success our very own HSB’s previous issuances