The securitization bond issuance includes two tranches with tenors of 13 and 36 months, which obtained credit ratings of AA+ and A
The Six of October Development and Investment (SODIC) announced earlier today that its subsidiary SODIC for Securitization closed its first securitization bond issuance.
The issuances is worth EGP 343 million and is backed by a receivables portfolio worth EGP 384 million, corresponding to future instalments for 753 handed over residential units in Eastown Residences in east Cairo and Caesar in the North Coast.
In a statement to the Egyptian Exchange (EGX), SODIC states the issued securitization bonds saw great success with investors, with the subscription value was covered more than once, a testament to the great confidence that SODIC enjoys in the Egyptian market.
The securitization bond issuance includes two tranches with tenors of 13 and 36 months, which obtained credit ratings of AA+ and A, respectively from Middle East Ratings and Investor Services (MERIS), SODIC added in a EGX statement released today.
The 13-month long tranche is valued at EGP 235 million with a fixed coupon rate of 9.55%, while the 36-month tranche has a value of EGP 108 million and a fixed coupon rate of 9.9%.
EFG Hermes acted as the financial advisor, arranger, manager, promotor, and co-underwriter of the transaction, along with National Bank of Egypt (NBE), Commercial International Bank-Egypt (CIB), Arab African International Bank (AAIB), and Suez Canal Bank.
SODIC’s real estate arm is currently being acquired by UAE’s largest property developer, Aldar Properties, which recently saw its 3rd extension to complete its due diligence by the Financial Regulatory Authority.
Aldar previously stated that it was halfway through its due diligence back in May. The company will have an additional 30 working days after the end of its previous deadline on August 2nd.
EFG Hermes was also appointed as financial advisors to study Aldar Properties’ preliminary acquisition offer.
